Oral Contracts Written Agreement Put Writing Eslpod States

In the United States, most "contracts" (legal agreements) are written. But "contrary to popular belief" (what most people believe is not actually true), some "oral contracts," or verbal agreements that are spoken but not written down, can also be "legally binding" (with the power of the law making sure that the agreement is followed). People sometimes say, "An oral contract is as good as the paper it's written on," meaning that a verbal agreement has no value, but in many "jurisdictions" (areas with legal power to make laws and legal decisions), they are "enforceable" (people can be held accountable and forced to comply with the agreement).

To be legally binding, an oral agreement must have "witnesses" (people who observe and see something happen, but do not participate in it). Having a witness is the only way to make an oral contract "provable" (demonstrating the existence of the agreement), since nothing has been put in writing.

Oral contracts aren't allowed in all situations. In most states, certain types of contracts must be put in writing. For example, any contracts regarding the buying and selling of "real estate" (land and buildings) requires a written agreement. Goods that "change hands" (are passed from one person to another) upon death must also be "governed" (controlled) by a written contract.

Some states "establish" (create) restrictions, such as requiring that agreements involving more than a certain dollar amount, or more than a certain "term" (the amount of time covered by an agreement) must be put in writing.