Verbal contract
Encyclopedia
A verbal contract is any contract
which is expressed in words (written or spoken).
This contrasts with a contract which is implied by actions of the parties
. An implied contract can be either implied in fact
or implied in law. A contract which is implied in fact is one in which the circumstances imply that parties have reached an agreement even though they have not done so expressly. For example, by going to a doctor for a physical, a patient agrees that he will pay a fair price for the service. If he refuses to pay after being examined, he has breached a contract implied in fact.
Verbal contract is a frequently misused expression. It is often used by journalist
s when they mean to say oral contract
. When used in this sense, the term is confusing as well as incorrect, since a written contract is also a verbal one.
Contract
A contract is an agreement entered into by two parties or more with the intention of creating a legal obligation, which may have elements in writing. Contracts can be made orally. The remedy for breach of contract can be "damages" or compensation of money. In equity, the remedy can be specific...
which is expressed in words (written or spoken).
This contrasts with a contract which is implied by actions of the parties
Party (law)
A party is a person or group of persons that compose a single entity which can be identified as one for the purposes of the law. Parties include: plaintiff , defendant , petitioner , respondent , cross-complainant A party is a person or group of persons that compose a single entity which can be...
. An implied contract can be either implied in fact
Implied in fact contract
An implied-in-fact contract is a contract agreed by non-verbal conduct, rather than by explicit words. As defined by the United States Supreme Court, it is "an agreement 'implied in fact'" as "founded upon a meeting of minds, which, although not embodied in an express contract, is inferred, as a...
or implied in law. A contract which is implied in fact is one in which the circumstances imply that parties have reached an agreement even though they have not done so expressly. For example, by going to a doctor for a physical, a patient agrees that he will pay a fair price for the service. If he refuses to pay after being examined, he has breached a contract implied in fact.
Verbal contract is a frequently misused expression. It is often used by journalist
Journalist
A journalist collects and distributes news and other information. A journalist's work is referred to as journalism.A reporter is a type of journalist who researchs, writes, and reports on information to be presented in mass media, including print media , electronic media , and digital media A...
s when they mean to say oral contract
Oral contract
An oral contract is a contract the terms of which have been agreed by spoken communication, in contrast to a written contract, where the contract is a written document...
. When used in this sense, the term is confusing as well as incorrect, since a written contract is also a verbal one.