Collateral contract - Oral - English Law?

Question

can the main contract and the collateral contract both be oral?

Answer 1

Technically, yes, unless they are of a nature specified by statute as needing to be written (and I can't think of any right now)... on the other hand, if it's getting to that, it would be much better to get it all in writing. After all, your agreeing to the collateral is the consideration needed by law to make the main one valid. In case of trouble (like, even if both parties in the contracts are of good faith and discharge their obligations normally, a third party should contest the main agreement, you could not prove it was valid, as the consideration would, legally, be unprovable) ...

If it's a simple matter, with no risk of either party reneging, or of involvement of others, go along... if any complications can be feared, get it in writing.

Answer 2

All contracts can be oral except for those that do not comply with the statute of frauds.

In law school, we memorize the mneumonic MY LEGS

M- Marriage, in consideration for marriage (rarely used today)
Y- Year, if the contract binds the parties for more than a year or it is impossible to perform the contract in 1 year or less, it must be in writing.

L-Land, any agreement that involves the transfer or servitude of land must be in writing (restraining you from using your land).
E-Executor, all wills must be in writing
G-Goods, sales of goods over $500 must be in writing, with a few exceptions
S-Surety, taking over someone'd debt

Many states have abandoned some of these traditional categories of special contracts, although none have abandonded contracts involving land.

The statute of frauds was to prevent fraud over contracts without writing. It forces the parties to make the instrument. There are plenty of exceptions.