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In what case is an oral contract legally binding, if ever?

4 Answers

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  • Neil
    Lv 7
    9 years ago
    Favorite Answer

    For any case except real estate transactions. And of course, just as with a written contract there are so exclusions: A contract to commit a crime is not binding, for example.

  • 9 years ago

    Now I'm not sure if this is the whole picture, but I gather part of the threshold for an oral contract being binding, is where both parties can be said to have 'intended to create legal relations', which is a definition which has been worked over a lot in caselaw and has quite specific meaning.

    But there might need to be other standard essential elements of a contract, including 'consideration', and a price (?), and a few other things too, in order for it to be binding. Also it can't be for anything unlawful. Or for real estate.

  • 9 years ago

    Any time there is a bargained-for exchange over a matter that does not legally require a written contract. (Real estate contracts have to be in writing.)

    As long as the plaintiff can prove there was an agreement, the contract is legally binding.

  • Anonymous
    9 years ago

    When there are credible witnesses to the contract, or credible evidence.

    If you get into a taxi and the driver delivers you to your address, you must pay for the service. You will be held responsible in a court of law, even though you have no written contract.

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