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An oral contract is a type of business contract that is outlined and agreed to via spoken communication, but not written down. Although it can be difficult to prove the terms of an oral contract in the event of a breach, this type of contract is legally binding.
These include: Evidence to the court of the plaintiff's performance of services called for in the contract. Proof of any money exchange showing a deal was made. Proof of a loan and payments. A check written as a down payment or deposit. Witnesses present at the time the agreement was made.
A contract, whether written or oral, is only enforceable if the essential terms of the contract are clear and certain. The contract must be sufficiently definite and detailed as to what actions all parties are obligated to perform.
Generally, yes, an oral contract is enforceable even though it may be difficult to prove. The enforceability of oral contracts also comes down to the jurisdiction in which a contract may be contested and the type of agreement the contract relates to.
Contracts can be made verbally by speaking the intent of both parties; however, verbal contracts are more difficult to enforce in the courts. The fact that an agreement was not put in writing is not proof that a contract was not made.