An oral agreement, also known as a verbal agreement, is a contract made between two or more parties where the terms and conditions of the agreement are discussed and agreed upon verbally, rather than in writing. While oral agreements are legally binding, they can sometimes be challenging to enforce due to a lack of evidence or proof of the agreement`s terms.

In general, oral agreements are made informally, without any legal documentation, and can include anything from buying a car to establishing a partnership. However, the challenge with oral agreements is that they are often difficult to prove in court. Unlike a written agreement, which can be produced as evidence, an oral agreement relies on the parties involved to remember and accurately recount the terms.

The legal validity of an oral agreement is generally determined by the terms of the agreement and the intent of the parties involved. In some cases, an oral agreement can be deemed unenforceable if it violates any laws or statutes. Generally speaking, if the terms of the agreement are clear, and the parties involved had a mutual understanding of those terms, then an oral agreement will hold up in court.

It is worth noting that even if an oral agreement is legally enforceable, it is always recommended that any agreements be put in writing. A written agreement can ensure that all parties involved have a clear understanding of the terms and can help to avoid any misunderstandings or discrepancies. Moreover, a written agreement allows parties to refer to the agreement in the future, which can be helpful in case of any disputes.

In conclusion, an oral agreement is a legally binding contract made between parties orally, rather than in writing. While oral agreements are sometimes challenging to enforce, they can be legally valid if the terms of the agreement are clear, and the parties involved had a mutual understanding of those terms. However, for the sake of clarity and to avoid any possible disputes, it is always recommended to put agreements in writing.