What is the primary difficulty associated with oral contracts?

The primary difficulty associated with oral contracts lies in proving the terms agreed upon by the parties involved. Oral contracts are inherently less formal than written contracts, making it challenging to establish what specific terms were discussed and agreed upon. Since there is no physical documentation to refer to, disputes can arise over differing recollections of the agreement, leading to complications in demonstrating the existence of the contract and its specific provisions.

In addition, without tangible evidence, one party may assert claims that the other party might dispute, resulting in difficulties in the event of a breach. This lack of clarity can complicate legal proceedings because the burden of proof is on the party claiming that the oral contract exists, which can severely hinder their ability to seek recourse if the other party fails to fulfill their obligations.

While understanding legal obligations, enforcing the contract, and negotiating terms are also important aspects of contractual agreements, the ambiguity and difficulty in substantiating the specifics of oral contracts primarily stem from the lack of written evidence, making proof the central issue.