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A court may not enforce an oral contract if one or both parties lack competency or legal capacity. Examples of situations where parties may be deemed incompetent or lacking legal capacity include: If one or both parties were under the influence of alcohol or other incapacitating substances.
A contract is a legally enforceable promise between you and the seller. It describes the responsibility buyers and sellers have to each other when goods or services are exchanged. Contracts can be written, oral, or even implied. A binding contact can be a lease on an apartment or a purchase order for a new car.
An unconditional verbal offer becomes legally binding and enforceable on its acceptance, just like a written offer. However, certain offers, such as in a real estate sale or purchase, must be made in writing.
Generally, a verbal agreement can be enforced if one party can provide proof of the oral contract. For example, if the insurance company recorded a conversation you had with an adjuster who made a settlement offer and you agreed to it.
A verbal agreement is legally valid provided that the basic foundations of a binding contract are in place. However, there are cases where a physical written contract is necessary for the agreement to be legally-binding, irrespective of whether or not an oral agreement contains all of the elements of a contract.