An oral contract is an agreement made through spoken communication rather than written documentation. It involves two or more parties who agree on specific terms and conditions, which can be legally binding in many situations. However, proving the existence and details of an oral contract can be challenging, as there is no physical record of the agreement. While oral contracts are valid in many jurisdictions, certain types of agreements, such as those involving real estate or lasting longer than a year, typically require written contracts to be enforceable. Understanding the limitations and requirements of oral contracts is essential for both parties involved.