An oral agreement meaning

An oral agreement, also known as a verbal contract, is a type of agreement between two parties that is made verbally without being put in writing. Unlike written contracts, which are specifically documented, oral agreements can be made with just a handshake or verbal affirmation.

Oral agreements can be binding in the eyes of the law, but they can also be difficult to enforce because there is no physical evidence of the agreement. As a result, oral agreements are often considered risky and are not encouraged in legal transactions.

Despite their potential disadvantages, oral agreements are common in many situations. For example, when buying goods from a street vendor, customers often negotiate the price and final terms verbally. Similarly, people may agree on terms verbally when hiring someone to perform a service such as lawn maintenance or house cleaning.

However, when it comes to legal matters such as renting a property or buying real estate, oral agreements are not recommended. In most cases, these agreements are required to be in writing and signed by both parties to ensure that all terms and conditions are clearly outlined and understood. This also helps to prevent any misunderstandings or miscommunications that could arise from oral agreements.

In the event of a dispute over an oral agreement, it can be difficult to prove the terms that were agreed upon. The parties must rely on documentation such as emails, text messages, and witness testimonies. However, in some cases, these documents may not be legally admissible as evidence.

In conclusion, while oral agreements can be legally binding, they can also be risky and difficult to enforce. It is always advisable to have any agreements that involve legal matters in writing, signed by both parties to protect both parties` interests.