The law of verbal contract, also known as the oral agreement, is a binding agreement made between two or more parties that is not written down. This type of contract does not require a formal document and can be as simple as a handshake or verbal agreement. However, just because a verbal agreement is not written down, it does not mean it is any less valid than a written contract.

While the law of verbal contract is legally enforceable, it can be more challenging to prove in court than a written contract. This is because there may be disagreements over the specific terms of the agreement, as there is no written record to refer to. For this reason, it is recommended that all agreements be put in writing whenever possible.

There are a few exceptions to this rule, however. Verbal contracts may be enforced in certain circumstances, such as when one party has already performed their part of the agreement. This is known as the doctrine of part performance. For example, if you agreed to pay your neighbor $500 to paint your house, and they have already completed the painting, a court may enforce the verbal agreement even though it was not in writing.

Another exception is known as promissory estoppel. This occurs when one party has relied on the promise of another party, and would suffer damages if the promise is not kept. For example, if you promise to give your friend $100 to help them with their rent, and they use that promise to decline a higher-paying job offer, a court may enforce the verbal agreement under promissory estoppel.

It is important to note that not all verbal agreements are legally enforceable. Certain types of contracts, such as those involving real estate or large sums of money, must be in writing to be enforceable. Additionally, some states require that certain types of agreements be in writing, regardless of the amount of money involved.

In summary, while the law of verbal contract is legally binding, it is always advisable to put agreements in writing whenever possible. This can help to avoid misunderstandings and protect all parties involved. If a verbal agreement must be made, it is best to document the details of the agreement as thoroughly as possible, including the parties involved, the terms of the agreement, and any deadlines or contingencies. By taking these steps, parties can help to ensure that their verbal agreements are legally enforceable and that all parties are protected.