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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.
Samuel Goldwyn said, An oral contract is as good as the paper it's written on, but this is often not the case. The vast majority of transactions among individuals and between people and merchant companies are, in fact, the execution of oral contracts.rom Wikipedia, the free encyclopedia. An oral contract is a contract, the terms of which have been agreed by spoken communication. This is in contrast to a written contract, where the contract is a written document.