Oral and written contracts are two types of agreements that people make with one another. In general, a contract is a legally binding agreement that outlines the rights and responsibilities of each party involved. However, the distinction between oral and written contracts lies in the method through which they are established.
Oral contracts are agreements that are made verbally between two or more people. These types of contracts are common in daily life, as people frequently make agreements with friends, family, and colleagues on a verbal basis. In order for an oral contract to be legally binding, it must meet several requirements. Firstly, both parties must agree to the terms of the contract. Secondly, there must be an exchange of goods or services that is agreed upon by both parties. Lastly, the terms of the agreement must be specific and detailed enough for both parties to understand their obligations.
While oral contracts can be legally binding, they are often difficult to enforce in court. This is because there is no physical record of the agreement, which can make it difficult to prove the terms of the contract. As a result, it’s always best to get any agreement in writing whenever possible.
Written contracts, on the other hand, are agreements that are put in writing and signed by both parties involved. These types of contracts can be as simple as a written agreement between two people, or as complex as a multi-page contract between multiple parties. In general, written contracts are easier to enforce in court than oral contracts because they provide a clear and specific record of the terms of the agreement.
There are many different types of written contracts, including employment contracts, rental agreements, and sales contracts. Regardless of the type of contract, all written contracts should include several key elements. These include the names of all parties involved, a clear description of the goods or services being exchanged, the payment terms, and any other specific terms or conditions that both parties have agreed upon.
In summary, oral and written contracts are two types of agreements that are used to establish legally binding agreements between two or more parties. While oral contracts can be legally binding, they are often difficult to enforce in court. Written contracts, on the other hand, provide a clear and specific record of the terms of the agreement, making them easier to enforce. Regardless of the type of contract, it’s important to ensure that all parties involved understand the terms of the agreement and are committed to upholding them.