While these following factors are not necessary to enter into a valid oral agreement, it is generally recommended that the parties include them, as they can be useful if they have to prove that there is an oral contract: finally, a letter that is not the contract, but is signed by the party who rejects it, who admits: that a contract has been concluded. can establish a binding contract, even if the underlying contract was oral: oral contracts are oral agreements between two parties. There is an oral contract when the words spoken are made valid in court and made legally enforceable. However, an oral contract is not legally enforceable unless it can be proven in court and must meet different requirements for the formation of the contract. In addition, it must not violate laws that prohibit oral treaties. For example, state laws may require sales of real estate, and agreements may be in writing, or the performance must last more than a year. To the surprise of many California citizens, oral or oral contracts may be fully enforceable in this state in many circumstances. California`s Civil Code explicitly prohibits certain contracts from being oral – they must be in writing. However, with the exception indicated below, an oral contract may be applied in that State. Oral contracts are best used for simple agreements. For example, an oral contract on the trade of a used lawn mower for a used dryer does not require much detail. The simpler the contract, the less likely it is that the parties involved will be brought to justice. .