Oral contracts are typically valid in Texas, although it is always a significantly simpler to enforce a written contract. When the agreement is in writing, the advantages are obvious should there be a dispute as to whether a contract existed or as to the terms of the agreement. However, by law (known as the Statute of Frauds), some contracts are required to be in writing. Such contracts include: (1) promises to pay someone else's debt if they default; (2) agreements involving an interest in property, such as sales of land, mortgages, liens, leases and easements which are intended by the parties to last more than a year; (3) agreements for a performance or service which cannot be completed within one year form the date of agreement; and (4) contracts for the sales of goods valued at $500 or more.

           The appearance and formality of the written contract are not important so long as it contains mandatory information for enforcement. It must identify the parties, the basic terms and conditions of the agreement, and the signature of the person against whom the contract is being enforced. If these requirements are not met, a person can raise the defense that it violates the Statute of Frauds; but if the defense is not raised, it is waived and the court will consider evidence of the oral agreement.

           In addition, the Statute of Frauds cannot be used to defeat the enforcement of a contract if the party has previously admitted the existence of the contract and/or the terms of the contract if the party has previously admitted the existence of the contract and/or the terms of the contract in testimony or court documents. Further, the Statute of Frauds will not apply if performance of the contract is complete or significantly underway since the judge of jury can look to the actions of the parties to determine their intentions.

           Should you have any questions or concerns about oral or written contracts, of how best to protect your interests, please contact an attorney of your choice.