Verbal contracts are hard to defend in court and are thus not quite as actionable. Generally, if it is important and there are risks associated with one party backing out, it goes in a written contract. If breaking the contract is not associated with a lot of risk, then it is fine to only use a verbal contract. For example, if someone backing out would cost you $100, it is not important enough to include in a written contract. In fact, I would just use a verbal contract. If it is broken, I am only out $100 but now I know that this partner does not hold up and cannot be trusted. The main distinction between the usage of the two is risk associated with worst-case scenario. As a leader, you can use a verbal contract as a scouting tool. What are your opinions on what is too much risk for a verbal contract?