What does an oral contract mean?

The Civil Code of Georgia gives the parties the opportunity to determine the form in which they want to enter into a transaction.

A deal can be made orally or in writing. Both written and oral contracts are binding on the parties.  

A transaction can be concluded verbally, if the law does not establish any specific form for the transaction, that is, if the law does not determine the obligation to conclude the contract in writing. In the event that the law directly provides for the conclusion of the contract in written form, the contract concluded orally is invalid as an informal transaction.

The oral form of the contract implies that the agreement between the parties was concluded verbally. Making an offer on an agreement (offer) and giving consent to an offer (acceptance) is done orally. It is possible to determine the terms of the contract orally, as well as to change it. Gifts, promises of gifts, exchange, purchase, request, rent, loan and other types of contracts can be concluded orally, the law does not provide for the obligation to conclude in writing. By law, the following types of agreements must be concluded in writing: lease, construction, usufruct, easement, demolition, purchase of real estate and others.  

It is necessary to note that in the event of a dispute, it is much more difficult to prove the existence of an oral contract and the terms agreed orally in court than in the case of a written contract. Therefore, PRIME LEGAL recommends, when concluding the contract, to sign it in writing.

Author: Beka Lobzhanidze