VERBAL CONTRACT Meaning and
Definition
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A verbal contract, also referred to as an oral contract or parol contract, is a legally binding agreement between two or more parties that is made solely through spoken communication, without any written documentation. It is a form of agreement that is based on the parties' spoken words, rather than physical evidence or written terms. In a verbal contract, the parties express their intentions and obligations verbally, often in the presence of witnesses or in other situations where the terms can be reasonably proven.
For a verbal contract to be valid and enforceable, it must meet certain criteria. Firstly, there must be an offer and acceptance, usually expressed orally by the parties. Secondly, there should be a mutual agreement or a "meeting of minds" between the involved parties regarding the essential terms and conditions of the contract. Lastly, the contract must be supported by valid consideration, meaning each party must promise something of value to the other.
Despite being legally binding, verbal contracts can pose challenges when it comes to evidentiary proof or potential misunderstandings due to the absence of written terms. Nonetheless, they are generally enforceable under law, although the burden of proof can be higher compared to written contracts. It is advisable, whenever possible, to have written contracts as they provide a more concrete and reliable source of evidence in case of disputes or disagreements.
Common Misspellings for VERBAL CONTRACT
- cerbal contract
- berbal contract
- gerbal contract
- ferbal contract
- vwrbal contract
- vsrbal contract
- vdrbal contract
- vrrbal contract
- v4rbal contract
- v3rbal contract
- veebal contract
- vedbal contract
- vefbal contract
- vetbal contract
- ve5bal contract
- ve4bal contract
- verval contract
- vernal contract
- verhal contract
- vergal contract
Etymology of VERBAL CONTRACT
The word "verbal" has its origins in the Latin word "verbalis", which derives from the noun "verbum", meaning "word". It entered the English language in the late 16th century. "Contract" comes from the Latin verb "contrahere", which means "to draw together" or "to enter into an agreement". It came into English in the 14th century through the Old French word "contract" with the same meaning. Together, "verbal contract" refers to an agreement or understanding that is expressed through spoken words, without being documented in writing.
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