A parol contract is an agreement that is not documented in writing. It can also refer to a modification of an existing contract that lacks written form. Sometimes, a parol contract may include some written elements but is primarily oral. This type of contract is often called an oral contract, parol agreement, or verbal contract.
Parol contracts are commonly encountered in various areas of law, including contract law and civil law. They are particularly relevant in situations where parties have made agreements verbally or have modified existing contracts without formal documentation. Users can often manage these types of agreements themselves by utilizing legal templates available through services like US Legal Forms, which provide guidance on creating enforceable contracts.
Here are a couple of examples of abatement:
Example 1: Two friends agree verbally to share the costs of a vacation rental. This agreement, while not written, can still be considered a parol contract.
Example 2: A contractor and a homeowner discuss changes to a renovation project over the phone, agreeing on a new price without signing a written amendment. This agreement is also a parol contract.
Examples of state differences (not exhaustive):
| State | Notes |
|---|---|
| California | Parol contracts can be enforced if they meet specific criteria, including clear evidence of the agreement. |
| New York | Oral agreements can be binding, but certain types of contracts must be in writing to be enforceable. |
| Texas | Texas recognizes parol contracts, but they must be supported by evidence and consideration. |
This is not a complete list. State laws vary, and users should consult local rules for specific guidance.
| Term | Definition | Key Differences |
|---|---|---|
| Written Contract | A contract that is documented in writing. | Written contracts are typically more enforceable than parol contracts. |
| Implied Contract | A contract formed by the actions of the parties rather than written or spoken words. | Implied contracts arise from behavior, while parol contracts are explicitly discussed. |
If you find yourself involved in a parol contract, it's essential to document the agreement as soon as possible. Consider creating a written record that outlines the terms discussed. Users can explore US Legal Forms for templates that can help formalize the agreement. If the situation becomes complex, it may be wise to seek legal advice.
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Yes, parol contracts can be legally binding if they meet the necessary legal criteria.