There are several disadvantages of verbal contract. The most common argument against a verbal contract is the lack of solid evidence. Since we are dealing with medical device, we have to keep in mind that most likely medical devices will deal with multiple lawsuits. If we rely on verbal agreement, medical device company will most likely loose. Moreover, there are specific regulations and rules of what may or may now terminate an agreement and it may not be discussed between two parties. This is why it is better to have written agreements in order to protect your company.