Can Oral Contract Be Binding?

1403 WordsOct 15, 20146 Pages
Contracts Can an oral contract be binding? Oral contracts are consider being a legal binding contract. One of the inconsistent areas would be proving an oral contract was made. To validate an oral contract, another party should be present during the time the two parties make an oral agreement. In the court system, having the party testifying would prove the existence of a verbal contract. Why might an oral contract present difficulties? If a problems or disagreement develop, the oral contract than becomes one person’s word against the other. The problem I feel with oral contacts is that they can be difficult to prove and enforce. It the party decides not to honor its bargain, it can be stated that no agreement was ever reached or they can insist that the terms agreed-upon were never discussed. Would you enter into one? I would be reluctant to enter into an oral contract because in a written contract the terms would be clearly set. I feel it would prevent any uncertainty with those who are involved with the contract. Can you give examples of conditions precedent to a contract? Conditions precedent is an area with establishing trusts. A parent can set up a trust for his or her child, but based on the trust contract the money will not be released until the child has fulfilled the set terms. Residential real estate contracts have a condition precedent. The contract does not become binding until the property has been professional inspection. This makes sure that the

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