Understanding Contracts and Their Requirements

Your verbal agreement is probably totally worthless. A real contract requires consideration,

meaning both sides have to lose something to gain something. If I promise you a free car just

because I’m nice, that is not a contract; it is a gift I can revoke anytime. The only exception

is if you quit your job relying on that promise, then promissory estoppel might save

you because it would be unjust not to. Also, if you’re dealing with land,

marriage, or goods over five hundred bucks, the Statute of Frauds says you better

write that down. If it’s not on paper, it never happened.