According to Verbal Agreement Law, a verbal agreement is an oral contract between two or more parties that creates a legal obligation. The terms of the agreement are not written down but are instead spoken and understood by all parties involved. While verbal agreements can be legally binding, they lack the certainty and enforceability of written contracts. For this reason, it’s essential to ensure any oral negotiations are properly documented with witnessed signatures, or better yet, recorded on video. To protect your interests, it’s always best practice to put your deal into writing so that everyone is clear on their obligations.