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Economics

Enforceability of Contracts

Quick fact

In many legal systems, oral contracts are just as enforceable as written ones—if they can be proven. The key is not the format but whether the essential elements of a contract are present.

Why this is interesting

You shake hands on a deal to buy a used car, but the seller changes their mind the next day. Can you force them to sell? The answer depends on whether your handshake was backed by something more than goodwill.