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Oral Contract Law & Legal Definition

An oral contract an agreement made with spoken words and either no writing or only partially written. An oral contract may generally be enforced the same as a written agreement. However, it is much more difficult with an oral contract to prove its existence or the terms. Oral contracts also usually have a shorter time period within which a person seeking to enforce their contract right must sue. A written contract generally provides a longer time to sue than for breach of an oral contract.

The statute of frauds is a law in every state which requires that certain documents be in writing, such as real property titles and transfers, leases for more than a year, wills and some types of contracts.  The purpose of the law is to protect against false claims for payment from contracts that were not agreed upon. Specific requirements vary by state.





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