oral contract (redirected from Orally binding)
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not recorded on paper or on computer, but made vocally which is usually enforceable.
A contract concluded by mutual agreement between the parties but is not written. In general, an oral contract is equally valid as a written one, though some contracts, such as those dealing with transfers of real estate
, must be written. However, oral contracts can be more difficult to enforce in a court of law if there are no witnesses or other evidence attesting to the existence of the oral contract.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
A verbal agreement that is enforceable unless it falls within the Statute of Frauds. The problem with most oral contracts is not one of technical enforceability; it is one of proof. Unless both parties to a dispute have a clear recollection of the exact terms of the contract, and they are both truthful, a jury will have to decide whether a contract exists and the terms of that contract.
The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.