An oral contract refers to an agreement made between two parties that is not in writing. This form of agreement is legally binding, but it is often difficult to enforce in a court of law. In general, oral contracts are not worth the paper they are not written on, as there is no tangible evidence to back up the agreement.
The difficulties with oral contracts arise from the lack of evidence. With no written agreement to refer to, it becomes difficult to prove the terms of the contract, which can make it challenging to enforce the agreement. Oral contracts are often subject to misinterpretation or memory lapses, which can result in disagreements and legal disputes.
The basic principle of contract law is that an agreement must meet specific requirements to be enforceable, including a clear offer, acceptance, consideration, and intention to create a legal relationship. Oral contracts can meet these requirements, but it often falls short in terms of evidence. In the absence of a written agreement, it becomes challenging to confirm the terms of the contract, such as what was agreed upon, when the agreement was made, and the terms of payment.
While oral contracts may seem convenient and straightforward, it is always advisable to put the agreement in writing. A written contract provides tangible evidence of the agreement and helps avoid confusion and disputes. A written agreement is easier to enforce in court, and it offers protection to both parties.
In conclusion, oral contracts are not worth the paper they are not written on. While they may be legally binding, they are often difficult to enforce due to the lack of evidence. To avoid potential conflicts and disputes, it is always better to have a written agreement in place. A written contract provides evidence of the agreement, and it is easier to enforce in a court of law. As such, both parties should always consider putting their agreements in writing to avoid potential legal issues in the future.