If an employee has carried out part of the operation, from acceptance by phone to delivery of goods, if the payment has been agreed orally, you should also receive a testimonial from him. A contract is an agreement between two parties that must be enforceable by law. Oral agreements are contracts concluded by oral communication. The purpose of the contract must be legal. In our example, the reason the nephew borrows money from his aunt is to replace a flat tire on his car. As such, the contract between them has a legitimate purpose. However, if the nephew wanted to borrow money to illegally modify his car (for example.B. To have lights installed to imitate a police car), the purpose becomes illegal and the contract is invalid. Many oral agreements are often accepted by shaking hands in such a way that an agreement has been reached.