Parol Contract

Definition: An oral agreement in the usual real estate exam usage of the term.

Example

Two parties discuss an agreement verbally without putting its terms into a signed writing.

Keep the distinction clear

Some oral contracts are enforceable, but the statute of frauds requires specified agreements to be in writing. The parol evidence rule is a separate concept involving evidence about written agreements.

Related terms

Statute of Frauds · Unenforceable Contract · Express Contract

Keep studying

Valid, Void, Voidable, and Unenforceable Contracts

References: California DRE: real estate glossary

Pronunciation (US): PAIR-ul KON-trakt (capitals show stress)

Pronunciation reference: Merriam-Webster