▁ver bal ▁contract ▁is ▁sometimes ▁used ▁as ▁a ▁syn onym ▁for ▁or al ▁contract . ▁However , ▁since ▁the ▁term ▁ver bal ▁could ▁also ▁mean ▁just ▁using ▁words ▁in ▁addition ▁to ▁using ▁spoken ▁words , ▁the ▁term ▁or al ▁contract ▁should ▁be ▁preferred ▁when ▁maximum ▁clar ity ▁is ▁desired . ▁ ▁Tex aco ▁vs . ▁P enn zo il ▁case ▁ ▁Samuel ▁Gold w yn ▁said , ▁" An ▁or al ▁contract ▁is ▁as ▁good ▁as ▁the ▁paper ▁it ' s ▁written ▁on ," ▁but ▁this ▁is ▁often ▁not ▁the ▁case . ▁ ▁The ▁vast ▁majority ▁of ▁transactions ▁among ▁individuals ▁and ▁between ▁people ▁and ▁merchant ▁companies ▁are , ▁in ▁fact , ▁the ▁execution ▁of ▁or al ▁contract s . ▁▁▁ ▁Or al ▁contract s , ▁when ▁made ▁correctly ▁before ▁witness es , ▁can ▁be ▁enfor ced . ▁ ▁For ▁example , ▁in ▁ 1 9 8 4 , ▁after ▁Get ty ▁O il ▁was ▁sold ▁to ▁P enn zo il ▁in ▁a ▁hand sh ake ▁deal , ▁which ▁is ▁leg ally ▁binding ▁under ▁New ▁York ▁law , ▁Tex aco ▁made ▁a ▁higher ▁offer , ▁and ▁the ▁company ▁was ▁sold ▁to ▁Tex aco . ▁ ▁( E ven ▁though ▁the ▁case ▁was ▁tried ▁in ▁Texas , ▁New ▁York ▁law ▁applied .) ▁ ▁P enn zo il ▁file d ▁a ▁law suit ▁alleg ing ▁tort ious ▁inter ference ▁with ▁the ▁or al ▁contract , ▁which ▁the ▁court ▁u ph eld ▁and ▁awarded ▁$ 1 1 . 1 ▁billion ▁in ▁dam ages , ▁later ▁reduced ▁to