An oral contract, also known as a verbal contract, is a binding agreement between two or more parties that is made through spoken words rather than a written document. Oral contracts are legally enforceable in most situations, but they can be more difficult to prove than written contracts. However, in certain situations, an oral contract can be binding when goods are received.

When a sale of goods occurs between two parties, the Uniform Commercial Code (UCC) comes into play. The UCC is a set of laws that governs commercial transactions in the United States and it recognizes that an oral contract can be binding when goods are received. Under the UCC, when a buyer and seller agree on the sale of goods and the buyer takes possession of or receives the goods, the contract is considered binding even if it was made orally.

However, there are a few conditions that must be met in order for an oral contract for the sale of goods to be binding. These include:

1. Both parties must have agreed to the terms of the sale, including the price, quantity, and delivery date.

2. The buyer must have accepted the goods as they were delivered, without objection.

3. The seller must have delivered the goods in accordance with the agreed-upon terms.

If these conditions are met, the oral contract is legally binding and both parties are obligated to fulfill their respective duties under the contract. This means that the seller must deliver the goods as promised and the buyer must pay the agreed-upon price for the goods.

It`s important to note that while oral contracts for the sale of goods can be binding, they can also be more difficult to enforce than written contracts. This is because the terms of an oral contract can be more difficult to prove without written documentation. Additionally, if a dispute arises, it can be difficult to determine the exact terms of the contract without a written record.

In order to avoid potential issues with oral contracts, it`s always a good idea to get any agreements in writing whenever possible. This can help ensure that both parties are clear on the terms of the contract and can help prevent misunderstandings or disputes down the line.

In summary, while oral contracts can be binding when the sale of goods is involved, it`s important to ensure that all of the necessary conditions are met and that both parties understand the terms of the agreement. Whenever possible, it`s best to get agreements in writing to help prevent potential issues or disputes.