An oral understanding is not binding if:
A) the services performed were not to the satisfaction of the other party.
B) the amount agreed to be paid for services rendered was not a fair and reasonable amount.
C) the parties intended to formalize their understanding with a written agreement.
D) the understanding may be terminated at will by either party.

Question

Quizplus · Accepted Answer

If the parties intended to formalize their understanding with a written agreement, then the oral understanding is not binding. This means that until there is a written agreement signed by both parties, the oral understanding is not legally enforceable.

An Oral Understanding Is Not Binding If