What kind of contract can be orally created or modified, depending on the circumstances?

A parol contract refers to an agreement that can be created or modified verbally, rather than in written form. In legal terms, "parol" signifies an oral agreement that is not documented in writing. This characteristic allows for flexibility, as it enables the parties involved to alter the terms based on discussion and mutual consent without the requirement of formal documentation.

Understanding parol contracts is important in real estate and other legal contexts because they can still be legally enforceable, albeit with certain limitations. Courts may uphold parol contracts if there's clear evidence of the agreement and both parties have acted in accordance with it. This is particularly relevant in scenarios where it might be impractical to document every agreement or modification in writing.

In contrast, written contracts require formal documentation and signatures, making them less flexible in terms of modifications without a proper amendment process. Implied contracts arise from actions or circumstances rather than explicit agreements and may not be strictly oral in nature. A unilateral contract involves a promise in exchange for performance, which is distinct from simply having an oral agreement. Therefore, a parol contract is correctly identified as one that can be verbally established or modified based on the circumstances.