Verbal Contract Vs Written Contract

When it comes to legal agreements, contracts are an essential tool used by businesses and individuals to define the terms and conditions of a relationship or transaction. Contracts can be written or verbal, but which is better? In this article, we will discuss the differences between verbal and written contracts and help you determine which one might be best for your business needs.

Verbal Contracts

A verbal contract is an oral agreement made between two or more parties. These agreements can be made in person, over the phone, or even through email or messaging. Verbal contracts are often used for minor transactions, such as simple home repairs, buying and selling goods, or services that can be easily completed within a short period of time.

One advantage of verbal contracts is that they are often quicker and easier to create than written contracts. There are no legal formalities required, and they can be made on the spot. However, the drawback is that verbal contracts can be difficult to enforce in court. Because there is no physical written agreement, it can be challenging to prove the terms of the contract or even that a contract existed.

Written Contracts

Written contracts, on the other hand, are formal agreements that are put in writing, and often include legal terminology and specific details about the transaction or relationship. They can be used for more significant transactions, such as real estate purchases, employment agreements, or long-term service contracts.

One advantage of written contracts is that they provide a clear record of the terms and conditions of the agreement. They can be easily referred to in the case of disputes or misunderstandings. Additionally, written contracts can include legal clauses and protections that may not be available in verbal agreements.

The main drawback of written contracts is that they can be time-consuming and expensive to create. It may require the assistance of lawyers or legal experts to ensure the contract meets legal requirements and is binding. Additionally, written contracts are not always practical for small or casual transactions.

Which is better?

In general, written contracts are considered to be the safer option because they provide clear proof of the agreement`s terms and make it easier to enforce the contract in court. However, verbal agreements can be useful for simple transactions that do not require extensive documentation, and they can be completed more quickly and efficiently.

Ultimately, the type of contract you choose will depend on the nature of your business and the specific transaction or relationship you are entering into. If you are unsure which type of contract is best for your needs, it is always best to seek the advice of a legal expert.


Verbal and written contracts both have their advantages and disadvantages, and the choice between them largely depends on the nature of the transaction and the parties involved. In general, written contracts provide more protections and are easier to enforce, while verbal contracts are faster and easier to create. Whatever type of contract you choose, it`s always best to seek legal advice and ensure that it meets all legal requirements.