What is an unwritten contract?

An unwritten contract is fundamentally an agreement that has not been formalized in a written document. This type of contract can exist solely based on the verbal agreement or the conduct of the parties involved. It is important to note that unwritten contracts can be legally enforceable, provided that they meet the necessary elements of a contract, including offer, acceptance, and consideration.

The key aspect of an unwritten contract is that it relies on the mutual understanding and intent of the parties, rather than any formal documentation. This form of agreement can be established through various forms of communication, such as spoken conversations or through actions that suggest an agreement has been made.

Understanding the nature of unwritten contracts is crucial, as they may be more difficult to prove in a legal dispute compared to written contracts. Yet, they still hold legal weight in many situations, particularly if there is sufficient evidence of the agreement and the expectations of the parties involved.