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Simple English definitions for legal terms
parol contract
Read a random definition: Insurance - State statutes
A quick definition of parol contract:
A parol contract is an agreement between two or more people that creates obligations that can be enforced by law. It can be written down or just spoken. The term "contract" can refer to the agreement itself or the physical document that records it. A contract is a promise or set of promises that the law recognizes as a duty, and if someone breaks that promise, the law can provide a remedy.
A more thorough explanation:
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.