Although the law considers oral agreements to be legally binding, they present much more difficulties in enforcing them. If you have a written contract, you can clearly identify all the conditions that must be enforced by the parties involved. For example, employers, workers and self-employed contractors may consider it invaluable to document the terms of their agreements in an employment contract or service contract. While a verbal agreement may be legally enforceable, it can be difficult to prove in court. A written or oral employment contract is legally an agreement between an employer and an individual. Therefore, any changes can only be made with the agreement of both parties. An employer proposing to amend the terms of an employment contract should consult the employee in full and write down all agreed changes. However, if the amendment is agreed and implemented orally by both parties, there should be no problem in treating the contract as enforceable, even though the contract or any amendment has not been signed. In today`s rapidly changing world, it is not uncommon to see a problem emerging that requires immediate modification of an existing treaty between the parties. Oral changes that can be made in person, over the phone or via digital conference platforms such as Skype or FaceTime are a popular tool for customizing the terms of an agreement. The many ways in which oral changes can be made offer great flexibility in place and time that can be of extreme value to the moving parts. However, as with any legal method, certain drawbacks and pitfalls are prudent when deciding how to modify an existing contract and whether an oral amendment is appropriate. If two or more parties reach an agreement without written documents, they will enter into an oral agreement (formally known as an oral contract).
However, the authority of these oral agreements can be a bit of a grey area for those who do not know the law of contracts. For a verbal agreement to be binding, the elements of a valid contract must be present. To illustrate how the elements of a contract create binding conditions in an oral agreement, we use the example of a man who borrows $200 from his aunt to replace a flat tire.