Oral Contract

Business, Legal & Accounting Glossary

Definition: Oral Contract

What is the dictionary definition of Oral Contract?

Dictionary Definition

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. For example, California’s limitation is two years for oral compared to four for written, Connecticut and Washington three for oral rather than six for written, and Georgia four for oral instead of 20 for written.

Synonyms For Oral Contract

Verbal Contract

Cite Term

To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
Modern Language Association (MLA):
Oral Contract. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. September 22, 2020 https://payrollheaven.com/define/oral-contract/.
Chicago Manual of Style (CMS):
Oral Contract. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/oral-contract/ (accessed: September 22, 2020).
American Psychological Association (APA):
Oral Contract. PayrollHeaven.com. Retrieved September 22, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/oral-contract/

Definition Sources

Definitions for Oral Contract are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 29th April, 2020 | 0 Views.