Oral Contract

(redirected from Oral contracts)
Also found in: Dictionary, Thesaurus, Financial.

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 ?
These types include, but are not limited to, constitutions, statutes, regulations, judicial opinions, judicial orders, oral contracts negotiated by the parties, written contracts negotiated by lawyers, and wills.
The agent who enters into an oral contract will find himself facing someone like old Sam Goldwyn telling him that there is no chance of enforcing the oral agreement.
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.
A home remodeling contractor who has entered into an oral contract for home remodeling, in violation of section 15 of the Home Repair and Remodeling Act (815 LLCS 513/1 et seq), may not only seek recovery under a theory of in quantum meruit but also enforce the oral contract, the Illinois Supreme Court has held.
Lower ranking firms, particularly county-level firms, choose oral contracts more often, in part because they maintain close relationships with local farms and have confidence in each other.
In addition, the HRRA is not intended to overturn settled Mechanic's Lien Act law allowing a contractor to assert a mechanic's lien based on an oral contract.
If adjudicators were required to act in relation to oral contracts then they would have to decide whether the evidence with which they were provided, suggested that there was a contract, and, if so, the terms on which the contract was made.
9 million against the actress in a case that reminded Hollywood of the validity of oral contracts.
The lawsuit was originally filed July 30, 2007 with 11 causes of action, including: Fraud, Negligence, Breach of Written and Oral Contracts and Breach of Fair and Honest Dealing and Good Faith by a Real Estate Licensee.
Even though oral settlement agreements, like oral contracts of other types, can be binding, proof becomes a difficult issue.
Leigh Ann Burton filed a civil complaint for breach of contract and false promise in Los Angeles Superior Court seeking an unspecified amount of damages from Lions Gate Entertainment, Lions Gate executive and Loeb & Loeb attorney John Dellaverson, Chanel Capra, and others for allegedly breaching their written and oral contracts with Ms.