An oral contract is usually as valid and enforceable as a written contract, unless there is a separate legal requirement that the contract be in writing. For example, the law requires that a contract for the sale of land be in writing to be enforceable. Another example is any contract that takes more than a year to complete, which also must be in writing. So, if you orally agree with your friend that you will sell him your car for $2,000, payable in four monthly installments, then you have made a legally binding contract. But if you orally agree with your friend to sell your farm to him for $10,000, then the agreement is not a legally enforceable contract because it is not in writing.

If you intend to make a contract, you should always put it in writing! Oral contracts are very hard to prove to a judge and are, therefore, very hard to enforce.