one that is not in writing or that is not signed by the parties. Oral contracts for most purposes are enforceable, but contracts for the sale of real estate must be in writing.
contract between two parties that has been spoken, but not agreed to in writing or signed by both parties. Oral contracts are usually legally enforceable, though not in the case of real estate.
an unwritten agreement. With few exceptions, unwritten agreements for the sale or use of real estate are unenforceable. In most states, contracts for the sale or rental of real estate are, unless they are in writing, unenforceable under the statute of frauds. Verbal leases for up to a year are often acceptable.
Example: Abel agrees to sell property to Baker. Their contract is oral. Abel changes his mind. He faces no penalty because oral contracts for the sale of real estate are unenforceable.
