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Yes, an unwritten contract can be legally binding if it can be proved that a contract exists between the parties. For instance, many tenants do not have a written lease or rental agreement with their landlords. But it's easy to prove that a contract exists because the tenant is renting the property and the landlord is accepting rent from the tenant. What is harder to establish, however, is what the exact terms of an oral contract are. That's why it is always advisable to put it in writing so that there is no question that a contract exists and both parties are clear on what their rights and obligations are.

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