An oral agreement is a verbal contract between two or more parties, where they agree on specific terms without written documentation. These agreements can cover various topics, such as business deals, rental agreements, or personal arrangements. While they can be legally binding, proving the terms can be challenging if disputes arise. In many jurisdictions, oral agreements are enforceable, but they may be harder to validate than written contracts. Important factors include the clarity of the terms and the intent of the parties involved. It's often advisable to follow up oral agreements with written confirmation to avoid misunderstandings.