Generally, an oral contract (although difficult to prove) is a valid contract. In most states, the only contracts that must be in writing are: contracts involving the sale of real estate, contracts for the sale of tangible personal property worth $500 or more, contract that cannot be completed within a one year period and a promise to pay the debt of another party. That said, the issue of proof makes it advisable to memorialize any significant agreement in a signed, written contract.
– Tip from Go Small Biz Advisors
©2011 Paul Curtis, Pre-Paid Legal Services Inc.
