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An oral contract is a spoken agreement that is as valid as a written contract. For
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example, if you have a promise that a job will be complete for monetary or any
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other compensation, you have created an oral contract. Oral contracts are mostly
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legally enforceable, although they are frequently subject to misinterpretation and they can be difficult to prove in court because they often come down to one
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person's word against the other one. Moreover, some types of contracts must be in
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writing, for example, contracts for the purchase or sale of any interest in that real property.
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Written contracts are produced on paper or electronically. Legally, a written
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business contract is easier to uphold than an oral contract is because there is a reference for the agreement. With a written contract, it's "easier to prove the terms
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between the parties and to eliminate arguments over who said what ," says Jack
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Cummins of Chicago-based Cummins & Associates, for which represents small businesses. He adds that it's often easier for businesses to recognize potential points of contention in the language because the agreement is detailed in writing. Whether
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your small business is providing with or offering services, you should consider
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using a written business contract and including certain specific details about the agreement.