Some oral contracts are unenforceable. These four types of contracts, which pose a high risk of fraud, should normally be written down. To win the case, the aunt must prove with evidence that her nephew lent the money with the intention of repaying it, while the nephew must prove that he did not accept. Without the documentation of the agreement, it will be a matter of er-she-said. In the end, it is a judge who decides which case is most likely of the party. They cannot enter into a final oral contract if the activity concerned is illegal. For example, you cannot make a verbal agreement with someone to provide illicit drugs for a price. Even if you both agree with the conditions, a court will not apply the provisions of the treaty because the activities in question are contrary to state law or the state or both. There are two main differences between an oral contract and a written contract. The first and most obvious is that an oral contract is an oral agreement. Second, oral contracts are pronounced, that is, there is no other evidence that they were created, with the exception of the parties or witnesses who heard them. With respect to the validity of oral agreements in the handling of several cases, the courts recognized the acceptability of oral agreements as soon as it was established that they met the essential conditions set out in Section 10. As we see in the case of Alka Bose vs.
Parmatma Devi- Ors [CIVIL APPEAL NO (see 6197 OF 2000], the Supreme Court found that the oral agreements were valid. A sales contract can also be oral and valid. There is no need for an agreement to be written, and more importantly, it should be under Section 10 of the Indian Contract Act. All written and oral agreements are valid if they meet the conditions set out in Section 10. There are several requirements that must be met in order to make an oral contract. Below is a basic list of oral contract requirements: For clarity reasons, a contract is a formal process and can be written or oral. Agreements can be considered as previous contracts, often less formal, but which can be formalized as soon as the elements of the contract are available. So they could help a friend build his house, but it`s still not a contract, unless the two parties accept several other elements of the same contract. In a treaty governed by law, reflection plays a crucial role, which is why we want to continue by discussing the extent and variants of the agreement that are dealt with under the Indian Contracts Act.