Oregon Construction Contractors (CCB) Practice Test

Are verbal contracts always enforceable?

1. Yes, always enforceable

2. No, never enforceable

3. Sometimes enforceable

4. Only if witnessed

The correct answer is: Sometimes enforceable

Verbal contracts, also known as oral contracts, can indeed be enforceable under certain circumstances, which is why the correct response is that they are sometimes enforceable. The enforceability of a verbal contract depends on several factors, including the specifics of the agreement, the context in which it was made, and applicable laws in the jurisdiction. For a verbal contract to be enforceable, it must meet the essential elements of a contract, which include mutual agreement, consideration, and the capacity of the parties to enter into a contract. Additionally, certain types of agreements, such as those involving the sale of real property or contracts that can’t be performed within one year, typically require written documentation to be enforceable under the Statute of Frauds. This means that while many verbal contracts may be upheld in a court of law, not all of them will be recognized in the same way. The other options do not accurately portray the nature of verbal contracts. Saying that verbal contracts are always enforceable ignores the limitations posed by legal requirements, while stating they are never enforceable is misleading, as many valid verbal agreements do exist. The option suggesting they are only enforceable if witnessed is also incorrect, as witnessing is not a uniform requirement for enforceability in all scenarios