A verbal contract is an agreement between two or more parties that is spoken and not written down. Parties can make oral agreements in person or over the phone, but there’s no official documentation of the terms and conditions. They’re the norm for simple and low-risk situations. For example, borrowing money from a friend and agreeing to repay it with interest constitutes a verbal agreement between the lender and borrower. Both parties consent to the terms and stipulations. What happens if the borrower fails to pay it back? Does the lender have the legal right to go to court? So, let’s find out what makes oral contracts enforceable.