Without a written agreement, it is often the word of one party against another. We therefore recommend avoiding oral chords. However, if you enter one, we advise you to send an email or letter to the other party confirming the agreed terms. The more written documentary evidence you have, the better your chances of obtaining oral agreement. (1) All agreements should be written down in a properly developed contract. Oral agreements should be avoided at all costs. Another problem with oral agreements is that some people are placed on the ground in their discussions and can enter into agreements without much thought into the details and consequences of the transaction. As a general rule, a written agreement gives each party the opportunity to read the terms of the agreement before the signing and conclusion of this agreement. For this reason and the reasons mentioned above, we always recommend a written agreement as opposed to an oral agreement. 4. Capacity: The parties must have a definitive contractual capacity. This legal concept is not the same as that of a layman.
In contract law, it is an act, “indulgence or promise, on the part of one person in exchange for the same thing from another.” Reflection can be a promise, or something as insignificant and unusual as a “peppercorn.” This is why many written contracts refer to “1” as a “reflection.” If the contract is verbal for one of the above, it is not enforceable. The same applies, under the Single Code of Trade (UCC), for the sale of goods worth more than $500.00. “An oral contract is not worth the paper on which it is written.” – Samuel Goldwyn, film producer There are several ways to prove the terms of the contract in court. First, if the payment was made from one party to another, it is proof that there was an agreement for goods or services. The performance of one or both parties also indicates a form of agreement that has taken place in the past. All oral, written or unspoken contracts have certain elements considered valid. The concept of an oral contract is sometimes used as a synonym for an oral contract. Since the term verbal can also mean that words are used only in addition to the use of spoken words, the term oral contract should be preferred if the clarity is maximum.  However, in this scenario, despite conflicting evidence, the Court should determine exactly what was said and then decide what that meant. Finally, it should check whether both parties intend to enter into a contract. If a court did not have sufficient “security,” the so-called agreement would fail. The purpose of the contract must be legal.
In our example, the nephew`s reason is to borrow money from his aunt to replace a flat tire on his car. As such, the contract between them is legal.