A verbal agreement is an understanding between two or more parties that is expressed through spoken words rather than written documentation. These agreements can cover various topics, such as business deals, personal arrangements, or service contracts. While they can be legally binding, proving the terms of a verbal agreement can be challenging if disputes arise. In many cases, verbal agreements rely on the trust and good faith of the involved parties. However, it is often recommended to follow up with a written contract to clarify the terms and provide a record, especially for significant commitments involving money or services.