Legal Definitions - parol contract

A parol contract refers to a contract that is not entirely in writing. This can include agreements made purely by spoken words (often called oral contracts) or agreements where some terms might be written, but the complete and comprehensive agreement is not formalized in a single written document. Despite not being in writing, many parol contracts are legally enforceable, although proving their specific terms can be more challenging than with written contracts.

Here are some examples to illustrate this concept:

• Example 1: Verbal Agreement for Services

  Imagine a homeowner calls a local painter and verbally agrees for the painter to paint their living room for a quoted price of $800. They discuss the color and timeline over the phone, and no written estimate or contract is signed. When the painter completes the work, the homeowner is expected to pay the agreed-upon amount.

  This is a parol contract because the entire agreement regarding the painting services and payment was made through spoken words, without any written document formalizing the terms.

• Example 2: Informal Sale of Goods

  Consider a situation where a person visits a garage sale and verbally agrees to buy an old bicycle from the seller for $50. They hand over the cash, and the seller hands over the bicycle. There is no written receipt or sales agreement exchanged.

  This transaction forms a parol contract. The agreement to exchange the bicycle for money was made orally and through the actions of the parties, without any written documentation.

• Example 3: Short-Term Verbal Employment

  A small event planning company needs extra staff for a single, large weekend event. The owner verbally offers a college student $15 per hour to work Saturday and Sunday, explaining the duties. The student accepts the offer and shows up for work as agreed.

  This constitutes a parol contract for temporary employment. The terms of the work, duration, and compensation were agreed upon verbally, without a formal written employment agreement or contract being signed.