The risks of starting a new project on just a Verbal Agreement is that there is tremendous room for genuine misunderstandings. The other team may not fully understand the nuances of the contract and because it was orally made there is nothing to look back on to fully understand it. However, if the contract was a written contract it would be easier to follow and there will be less chances of misunderstandings. The written agreement would provide exact parameters to follow and there would be no uncertainty. Also an oral agreement is seen to last a shorter period than a written agreement and that is interesting to note. Most of all oral agreements are extremely hard to prove in legal contract disputes.