what is an oral contract 
an oral contract is a type of business contract that is outlined and agreed to via spoken communication but not written down although it can be difficult to prove the terms of an oral contract in the event of a breach this type of contract is legally binding understanding oral contractsoral contracts are generally considered as valid as written contracts although this depends on the jurisdiction and often the type of contract in some jurisdictions some types of contracts must be written to be considered legally binding for example a contract involving the conveyance of real estate must be written to be legally binding in some cases an oral contract can be considered binding but only if it s evidenced by a written contract this means that once the oral contract has been agreed upon the parties must write down the contract terms other evidence that can be used to bolster the enforceability of an oral contract includes the testimony of witnesses to the creation of the contract 