​KembaraXtra – Legal Terms – Oral Agreement


An oral agreement is a contract made verbally rather than in writing.


Provided the essential elements of contract formation are present, oral agreements may be legally enforceable.


However, certain contracts, especially those involving land or guarantees, must by statute be in writing to be enforceable.


Oral agreements can sometimes create evidential difficulties because the exact terms may later be disputed.


The courts may examine the conduct of the parties and surrounding circumstances to determine the existence and terms of the agreement.