Oral Agreement vs. Verbal Agreement

Attribute	Oral Agreement	Verbal Agreement
Definition	An agreement made through spoken communication.	An agreement made through spoken communication.
Legality	May or may not be legally binding, depending on the jurisdiction.	May or may not be legally binding, depending on the jurisdiction.
Enforceability	May be difficult to enforce without written evidence.	May be difficult to enforce without written evidence.
Proof	Difficult to prove without witnesses or other evidence.	Difficult to prove without witnesses or other evidence.
Formality	Less formal than a written agreement.	Less formal than a written agreement.

Definition

Oral agreements and verbal agreements are often used interchangeably, but they actually have distinct meanings in the legal world. An oral agreement is a contract that is spoken and agreed upon by two or more parties, while a verbal agreement is simply an agreement that is expressed in words, whether written or spoken. The key difference lies in the enforceability of the agreements.

Enforceability

One of the main differences between oral and verbal agreements is their enforceability in a court of law. Oral agreements are legally binding, but they can be difficult to prove in court due to the lack of written evidence. Verbal agreements, on the other hand, are not legally binding unless they are put into writing. This means that oral agreements are more likely to be enforced by a court than verbal agreements.

Evidence

When it comes to proving the existence of an agreement, oral agreements rely on the testimony of the parties involved. This can make it challenging to provide concrete evidence of the terms and conditions of the agreement. Verbal agreements, on the other hand, can be supported by written documentation, such as emails or text messages, which can serve as evidence in court. This makes verbal agreements easier to prove in a legal dispute.

Clarity

Another difference between oral and verbal agreements is the level of clarity they provide. Oral agreements are often based on verbal communication, which can lead to misunderstandings or misinterpretations of the terms of the agreement. Verbal agreements, on the other hand, are typically documented in writing, which can help clarify the terms and conditions of the agreement. This can help prevent disputes and misunderstandings down the line.

Flexibility

Oral agreements are often more flexible than verbal agreements, as they can be easily modified or amended through verbal communication. This can be both a benefit and a drawback, as it allows parties to adapt the agreement to changing circumstances, but it can also lead to confusion or disputes if the terms are not clearly defined. Verbal agreements, on the other hand, are more rigid and less easily modified, as any changes must be documented in writing to be legally binding.

Formality

Oral agreements are typically less formal than verbal agreements, as they do not require any written documentation to be legally binding. This can make oral agreements more convenient for parties who want to quickly reach an agreement without the hassle of drafting a formal contract. Verbal agreements, on the other hand, are more formal and require written documentation to be enforceable. This can provide a sense of security and clarity for parties entering into the agreement.

Conclusion

In conclusion, while oral and verbal agreements may seem similar, they have distinct differences in terms of enforceability, evidence, clarity, flexibility, and formality. Oral agreements are legally binding but can be difficult to prove in court, while verbal agreements require written documentation to be enforceable. Both types of agreements have their advantages and disadvantages, so it is important for parties to carefully consider which type of agreement best suits their needs before entering into any contract.