A verbal contract is a legally binding agreement between two or more parties based on spoken communication, rather than written. It is important to note that oral contracts are governed by the same laws as written ones, and must adhere to the same legal requirements. For example, in order to form a valid verbal contract, all parties must agree to the terms and conditions outlined in the agreement. Furthermore, the contract must be supported by consideration (meaning each party must benefit from the arrangement) and contain an offer, acceptance, and intention of the parties involved. Verbal contracts are useful when time is of the essence, but they can be hard to prove and enforce in courts if any disputes arise. That’s why it’s a good idea to have an attorney examine any verbal contracts you may be considering – this way, you can ensure that you and your clients are both living up to their respective obligations.