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 journalists 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.
Famous quotes containing the words verbal contract, verbal and/or contract:
“A verbal contract isn’t worth the paper it is written on.”
—Samuel Goldwyn (1882–1974)
“The “text” is merely one of the contexts of a piece of literature, its lexical or verbal one, no more or less important than the sociological, psychological, historical, anthropological or generic.”
—Leslie Fiedler (b. 1917)
“Smoking ... is downright dangerous. Most people who smoke will eventually contract a fatal disease and die. But they don’t brag about it, do they? Most people who ski, play professional football or drive race cars, will not die—at least not in the act—and yet they are the ones with the glamorous images, the expensive equipment and the mythic proportions. Why this should be I cannot say, unless it is simply that the average American does not know a daredevil when he sees one.”
—Fran Lebowitz (b. 1950)