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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. There may be written, or other physical evidence, of an oral contract â for example where the parties write down what they have agreed â but the contract itself is not a written one.
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.