Editing Oral contract (section)

{{Short description|Legal concept}}
{{globalize|article|USA|date=September 2016}}
{{Contract law}}
An '''oral contract''' is a [[contract]], the terms of which have been agreed by spoken communication. This is in contrast to a written contract, where the contract is a written document. There may be written, or other physical evidence, of an oral contract – for example where the parties write down what they have agreed – but the contract itself is not a written one.

In general, oral contracts are just as valid as written ones, but some jurisdictions either require a contract to be in writing in certain circumstances (for example where [[real property]] is being conveyed), or that a contract be evidenced in writing (although the contract itself may be oral). An example of the latter is the requirement that a contract of [[guarantee]] be evidenced in writing, which is found in the [[Statute of Frauds]].

Similarly, the limitation period prescribed for an action may be shorter for an oral contract than it is for a written one.

The term ''verbal contract'' is sometimes used as a synonym for oral contract. However, since the term ''verbal'' could also mean just ''using words'', not only ''spoken words'', the term ''oral contract'' is recommended when maximum clarity is desired.