There is usually some form of trust with a verbal contract.Whereas a written agreement can be shown to a judge in a dispute, there is no such protection with a verbal contract.Here’s another potential problem: what if the person signing puts in a date other than the date when they signed?
Sometimes, however, a court or tribunal will make exceptions, for example if one of the people who’s signed the contract is mentally ill or intellectually disabled.
The reason oral contracts and verbal agreements are often looked warily upon is that they tend to present difficulties when it comes to enforcement.
Contracts that are clearly written and executed are easier to present as evidence in court than the testimony of the contractual parties.
In the case of a legal agreement dispute, it often boils down to one person's word against the other's. It would usually make sense for the people agreeing on a verbal contract to know each other well. For example, a person might approach her friend, who owns a bakery, and ask if she would bake some cupcakes for her son's birthday party as a personal favor.
If the friend agrees, they may set a price without feeling the need to get it in writing.