ORAL CONTRACT Meaning and
Definition
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An oral contract refers to a legally binding agreement between two or more parties that has been established orally, without any written documentation. This type of agreement is based on the verbal exchange of promises, terms, and conditions, instead of relying on written terms and signed documents. Oral contracts are also commonly known as verbal contracts.
To be valid, an oral contract must satisfy certain legal requirements. Firstly, there must be a clear offer and acceptance between all parties involved, demonstrating their intention to form a contract. Secondly, there must be a mutual agreement on the essential terms and conditions of the contract, such as the subject matter, price, and delivery terms. Additionally, the parties must have the legal capacity to enter into a contract, meaning they must be of sound mind and of legal age.
While oral contracts are generally enforceable under the law, they are often challenging to prove in court due to the absence of written evidence. Disputes may arise when there is a lack of clarity or understanding regarding the agreed-upon terms, leading to conflicting interpretations of the contract's obligations.
It is worth noting that some jurisdictions have specific limitations on the nature of agreements that can be formed orally, particularly for certain types of contracts, such as those relating to the sale of real estate or contracts with a duration exceeding a specified period. In such circumstances, written contracts may be required to ensure their enforceability.
Common Misspellings for ORAL CONTRACT
- iral contract
- kral contract
- lral contract
- pral contract
- 0ral contract
- 9ral contract
- oeal contract
- odal contract
- ofal contract
- otal contract
- o5al contract
- o4al contract
- orzl contract
- orsl contract
- orwl contract
- orql contract
- orak contract
- orap contract
- orao contract
Etymology of ORAL CONTRACT
The word "oral" comes from the Latin word "ōrālis", which means "spoken" or "verbal". The term "contract" originated from the Latin word "contractus", which means "agreement" or "undertaking". Hence, the etymology of "oral contract" indicates that it refers to a spoken or verbal agreement.
Similar spelling words for ORAL CONTRACT
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