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Oral Agreement Vs Verbal Agreement

When it comes to legal agreements, the terms “oral agreement” and “verbal agreement” are often used interchangeably. However, there is a subtle difference between the two terms that can affect their enforceability.

An oral agreement is simply an agreement that is made verbally between two or more parties. It can be as informal as a conversation between friends or as formal as a business negotiation. Oral agreements are legally binding, as long as their terms can be proven. However, proving the terms of an oral agreement can be difficult, as there is typically no written record of the agreement.

A verbal agreement, on the other hand, is an agreement that is made with words. It can be either written or spoken and is often used interchangeably with the term “oral agreement.” The key difference between the two is that a verbal agreement can be recorded in writing, while an oral agreement cannot.

While both types of agreements are legally binding, it is generally considered more difficult to enforce an oral agreement than a written one. This is because without a written record of the agreement, it can be difficult to prove the terms of the agreement in court.

If you are entering into an agreement with someone, it is always a good idea to document the terms of the agreement in writing. This can help to avoid misunderstandings and disputes down the line. A written agreement can also make it easier to enforce the terms of the agreement if necessary.

In conclusion, although the terms “oral agreement” and “verbal agreement” are often used interchangeably, there is a subtle difference between the two. An oral agreement is simply an agreement that is made verbally, while a verbal agreement can be either written or spoken. Both types of agreements are legally binding, but it is generally considered more difficult to enforce an oral agreement than a written one. To protect yourself when entering into an agreement, it is always best to document the terms of the agreement in writing.