Oral contract - Definition and Overview

An oral contract is a contract that exists only in verbal communication, having not been written down or only partially written; in the latter case, the partially written contract lacks a memorandum. Oral contracts are just as binding as written contracts, proividing that sufficient proof of the contract exists. The statute of limitations is often shorter in regard to oral contracts than written contracts.

"An oral contract is as good as the paper it's written on."