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 ?
In other words, I ask them to assume (not unreasonably) that an oral contract was formed during the phone call, based on the combination of the Hills' oral offer to purchase the computer and Gateway's "prompt promise to ship.
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.
The Topeka Capital-Journal reported that Dimmick has filed a breach of contract suit in Shawnee County District Court, claiming he and the Rowleys reached a legally binding oral contract that they would hide him in exchange for an unspecified amount of money.
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.
The sticking point here is that the CISG does contain a limited provision allowing oral contracts.
Certainly, parties contemplating a large deal ought to have some basic knowledge of the law, as there may be some circumstances in which an oral contract is simply unenforceable.
Young recommended establishing a written or oral contract with the patient and the other clinician at the beginning of therapy.
22) Moreover, the government argued that there was no oral agreement to reduce the amount of liquidated damages and even if there had been such an agreement, oral contract modifications are unenforceable.
Although a written contract can contain ambiguities, the terms and stipulations commonly yield fewer discrepancies than an oral contract because both parties are privy to the decisions made in the written contract.