13:34
as far as i know, that information is simply for data collection purposes
Warning
Info
LSDefine
Simple English definitions for legal terms
oral contract
Read a random definition: Taxation - State statutes
A quick definition of oral contract:
An oral contract is an agreement made by talking instead of writing it down. Sometimes it's called a parol contract. However, not all oral contracts are considered valid. Each state has different rules about which oral contracts are valid. In California, contracts that involve selling real estate or property interests, long lease periods, or performance in the distant future must be written down to be valid. There are some exceptions, though, for financial contracts that have enough evidence to prove they exist or if there is a written contract that shows the parties intended to be bound by the oral agreement.
A more thorough explanation:
An oral contract is a type of agreement that is made verbally without being recorded in writing. It is also known as a parol contract. However, such contracts may not always be considered valid under certain circumstances as set forth by the various statutes of frauds in each state or under the UCC.
For example, in California, contracts that involve the sale of real property or property interests, secure long lease periods, or stipulate performance or authorize another’s performance in the distant future must be written to be considered valid under California Civil Code § 1624. However, there are exceptions that allow a valid agreement or contract to not fail for lack of memorialization, so long as they are qualified financial contracts and are either supported by sufficient evidence to prove their existence or a prior or subsequent written contract indicates the parties’ intent to be bound by those qualified financial contracts by the time the final agreement is made.
One example of an oral contract could be a verbal agreement between two friends to split the cost of a vacation rental. However, if one friend fails to pay their share, it may be difficult to enforce the agreement in court without a written contract or other evidence of the agreement.