Legal Definitions - parol contract

A parol contract is a type of contract that is made orally or through spoken words rather than in writing. It is also known as an oral contract. It is a legally binding agreement between two or more parties that can be enforced by law.

For example, if you agree to sell your car to your friend for $5,000 and your friend agrees to pay you the amount, this is a parol contract. Even though there is no written agreement, the contract is still valid and enforceable.

Another example of a parol contract is when you hire a plumber to fix your sink and agree to pay them $100 for their services. If the plumber completes the job and you pay them the agreed amount, this is a parol contract.

These examples illustrate that a parol contract can be made without a written agreement and can still be legally binding. However, it is important to note that some types of contracts, such as those involving real estate or goods worth over a certain amount, must be in writing to be enforceable.