In UK law, an oral contract is a legally binding agreement formed verbally between two or more parties.
Unlike written contracts, which are documented in writing, oral contracts rely solely on spoken communication to outline the terms and conditions of the agreement. While oral contracts are generally enforceable in UK courts, they can present challenges in terms of proving the existence and terms of the agreement, as there is often limited or no tangible evidence to support the parties’ claims.
However, certain types of contracts, such as those related to the sale of land or certain consumer transactions, may be required by law to be in writing to be enforceable.
Overall, while oral contracts are legally valid, it is advisable for parties to document their agreements in writing whenever possible to avoid disputes and facilitate enforcement.
n. an agreement made with spoken words and either no writing or only partially written. An oral contract is just as valid as a written agreement.
The main problem with an oral contract is proving its existence or the terms. As one wag observed: “An oral contract is as good as the paper it’s written on.” An oral contract is often provable by action taken by one or both parties which is obviously in reliance on the existence of a contract. The other significant difference between oral and written contracts is that the time to sue for breach of an oral contract (the statute of limitations) is sometimes shorter.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 29th March 2024.
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