Question

A buyer and a seller agreed to a home sale. it was not written, but the parties shook hands to cement the deal. the buyer paid a $5,000 earnest money deposit to the seller. this agreement is

Answer 1

Answer: oral or verbal contract

A buyer and a seller who agreed to a home sale who just shook hands and without a written document went thru an oral contract or verbal agreement. There must be an offer and an acceptance to make this oral contract valid.

Answer 2

ANSWER: Oral or Verbal Agreement.

EXPLANATION: The kind of agreement where it is not written it known as oral or verbal agreement. This is also a temporary agreement and can be ended without any notice or intimation by any of the party involved in it. It can also happen that the money which are being paid to the seller is not recovered or returned. There are no proof of any amount being paid by the buyer to the seller.