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Noun. 1. oral contract-an agreement that is not in writing and is not signed by the parties but is a real existing contract that lacks only the formal requirement of a memorandum to render it enforceable in litigation.
First, letâs look at the verbal agreement, or verbal contract. Understanding the Spoken Contract. One of the major misconceptions about a verbal contract is that it is the same thing as an oral contract. But really, even a written contract could be considered a âverbalâ contract because, well, it uses words. An oral contract, on the other hand, is a promise that has been plainly spoken and not written down.