Parol agreement

Parol agreement – this term refers to a verbal, oral contract, known as “hand shaking” – i.e. a contract that has not been sealed or signed. But the agreement is fully binding the parties who agreed on it. Within the provisions of the Law of Contracts in many jurisdictions, only certain types of contracts could be concluded as parol contracts. A synonym is “mouth contract”, “oral contract” and “verbal contract”.

See also “Pais”.

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