Listen to a Business English Dialogue About Oral contract
Eva: Hey Bobby, have you heard about oral contracts in business and finance?
Bobby: Yes, Eva. An oral contract is a verbal agreement between two or more parties that is legally binding.
Eva: Right, oral contracts are valid and enforceable under certain conditions, although they can be more difficult to prove compared to written contracts.
Bobby: Exactly, oral contracts typically involve an offer, acceptance, and consideration, just like written contracts.
Eva: It’s interesting how oral contracts are common in everyday transactions, like buying goods or services from a store.
Bobby: Yes, they’re often used in situations where formal written agreements may not be practical or necessary.
Eva: And oral contracts can be just as legally binding as written contracts, as long as there’s evidence of the agreement.
Bobby: Right, evidence can include witness testimony, emails, text messages, or any other documentation that supports the existence of the oral agreement.
Eva: It’s important for parties to be cautious when entering into oral contracts, as misunderstandings or disagreements can arise without clear terms.
Bobby: Absolutely, it’s always advisable to document agreements in writing whenever possible to avoid potential disputes.
Eva: And certain types of contracts, like those involving real estate or transactions exceeding a certain value, are required by law to be in writing.
Bobby: Yes, written contracts provide a clearer record of the terms and conditions agreed upon by the parties involved.
Eva: Overall, whether oral or written, contracts are essential for establishing rights and obligations between parties in business and finance.
Bobby: Indeed, contracts help ensure that agreements are honored and disputes are resolved in a fair and orderly manner.