I agree with cef3 that verbal contracts are difficult to defend in courts in case a dispute comes up between the two parties to an agreement. This, however, does not mean that verbal contracts are not binding. They are binding just like written agreements. The only problem is that they are difficult to enforce in a legal dispute, so I am in full agreement with Chris Vasquez. As to whether it is wise to start a project based on just verbal agreement, my opinion is that it is absolutely okay. However, I am of the opinion that before a person opts to rely on a verbal agreement fully, he or she should be certain that they can provide enough proof in court. One should not rely on a verbal agreement just because they are in good terms with the other party to the contract. Things can go wrong.