When is a contract typically enforceable despite not being in writing?

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A contract can often still be enforceable even if it is not in writing when the parties involved have partially performed their obligations. This scenario typically arises in situations where one party has begun to execute the terms of the agreement, demonstrating through their actions that there is an acceptance of the contract even in the absence of a written document.

The rationale behind this is rooted in the principles of equity and the prevention of unjust enrichment. If one party has relied on the agreement and fulfilled part of their side of the deal, it would be inequitable to allow the other party to back out without consequence. Courts often recognize this partial performance as evidence of a contract’s existence and enforceability, especially when the performance is significant enough to indicate that the parties intended to enter into a binding agreement.

In context, contracts for the sale of goods under the Uniform Commercial Code (UCC) also highlight this principle; for example, even verbal agreements or those that are not formally documented can sometimes be enforceable if the goods have begun to be delivered or accepted.