Why is an oral agreement considered non-enforceable?

Prepare for the TREC Law of Agency Exam. Study with multiple-choice questions and detailed explanations. Get confident for your test!

An oral agreement is considered non-enforceable primarily because it is not documented in writing. The requirement for certain contracts to be in writing is often governed by statutes, such as the Statute of Frauds, which specifies that certain types of contracts—including those related to real estate transactions—must be written to be enforceable. This requirement ensures that there is clear evidence of the terms agreed upon by the parties involved, providing a more reliable basis for enforcement. Without a written record, it becomes challenging to prove the existence and terms of the agreement, leading to potential disputes about what was actually agreed.

While misunderstandings can arise from oral agreements, the core issue with enforceability rests on the absence of a written document that clearly outlines each party's obligations and rights. Therefore, the emphasis on having written agreements serves to protect all parties and uphold the integrity of contractual agreements in legal contexts.

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