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As with many things in law, the answer is "Yes, but." In this case, there are some specific situations where an oral contract may not be used. You can check the California Civil Code on contracts (starting at section 1619) for a list of the types of contracts that must specifically be in writing; some examples are pretty much anything involving real estate, or anything that will not be completed within a year. Also, if one party denies making such an agreement, the burden of proof is generally on the person trying to enforce it, and this may be difficult to establish.

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