Oral contracts, also sometimes known as a "handshake" contract are not preferred in the business environment because
A) They are not actually contracts.
B) Most businesses prefer written contracts to minimize risk and uncertainty as it can be difficult to prove the terms of the contract without a writing.
C) Oral contracts tend to be more expensive.
D) The court, when pressed, will not uphold the terms of the contract.

Question

Quizplus · Accepted Answer

Oral contracts are indeed considered valid contracts, but they are not preferred in business due to the difficulty in proving their terms, which can lead to increased risk and uncertainty. This makes written contracts the preferred choice for most businesses.

Oral Contracts, Also Sometimes Known as a "Handshake" Contract Are