Oral Contract

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Related to Oral Contract: written contract

Oral Contract

An agreement between parties that is either partly in writing and partly dependent on spoken words or that is entirely dependent on spoken words.

An oral contract is enforceable unless its subject matter comes within the statute of frauds, an English Law adopted in the United States, that requires certain contracts to be in writing. For example, a contract to sell real property, to be enforceable, must be in writing to comply with the statute. An oral contract to sell Personal Property for an amount less than that set in the statute does not fall within its limits and, therefore, is enforceable without being reduced to a writing. The Uniform Commercial Code governs the enforceability of oral contracts in sales transactions involving merchants.

oral contract

n. an agreement made with spoken words and either no writing or only partially written. An oral contract is just as valid as a written agreement. The main problem with oral contracts is proving its existence or the terms. As one wag observed: "An oral contract is as good as the paper it's written on." An oral contract is often provable by action taken by one or both parties which is obviously in reliance on the existence of a contract. The other significant difference between oral and written contracts is that the time to sue for breach of an oral contract (the statute of limitations) is sometimes shorter. For example, California's limitation is two years for oral compared to four for written, Connecticut and Washington three for oral rather than six for written, and Georgia four for oral instead of 20 for written. (See: contract, agreement)

References in periodicals archive ?
An oral contract negotiation is similar to an ordinary conversation--the participants (both of whom occupy the roles of speaker and audience) are both present.
02/28/2013) where the Appellate Division of the New York Supreme Court refused Wysong's attempt to collect on an oral contract.
An oral contract is subject to the basic requirements of contract law such as offer, acceptance, consideration, and sufficient specification of essential terms.
9 Forestal filed a breach of contract claim in the Superior Court of New Jersey in April 2002 for the remaining balance due because it believed the oral contract specified the greater amount.
The McGinnises moved to dismiss, arguing that the oral contract alleged in Count II violated the Home Repair and Remodeling Act and was therefore unenforceable.
25) The Board found that even if the Navy contracting officer did attempt to orally settle the contract claim by agreeing that the total amount of liquidated damages was $68,394 (vice $98,394), such an agreement would constitute an oral contract modification.
Any written documentation that reflects negotiations is generally a help in establishing the terms of an oral contract.
Murphy under the Texas Deceptive Trade Practices Act, breach of oral contract, and battery based on the fact that Dr.
Leaning on a series of laws known as "equitable" or "fairness" doctrine, a Washington State appellate court ruled in the late 1990s that unmarried partners are presumed entitled to half of the couple's combined assets, even without a written or oral contract.
There are a lot of women out there in situations like this who don't realize that they have rights - that an oral contract is just as binding as a written one.
Be careful about what you promise orally; it may be construed later as constituting an oral contract.
I was forced to sue Jerry for breach of oral contract to collect the $5,000.