Under Section 10 of the Indian Contract Act of 1872, an oral agreement is a valid contract if it meets the usual conditions, such as free consent and a lawful object. “A sale agreement can be oral also and valid,” the Supreme Court held in Alka Bose v. Parmatma Devi, as quoted by the legal site iPleaders. The Delhi High Court has called oral agreements “valid and enforceable.”
The difficulty is proof. An oral agreement is hard to prove if a dispute arises later.