Verbal Agreement Binding In California

In other words, there should be an agreement on the parties, the obligations of each party, the price to be paid and the object of the contract. While oral contracts are enforceable in California in many circumstances, the California Civil Code expressly requires that certain agreements be in writing in order to be enforceable. Contrary to what most people think, an informal exchange of commitments can still be binding and legally as valid as a written contract. A spoken contract is often referred to as an “oral contract”, not an “oral contract”. An oral contract is simply a contract that uses words. All oral and written contracts are oral treaties.