In Ely v Robson , the Court of Appeal confirmed that the applicant owned property where he lived with the defendant, on the basis of “constructive trust” – or common intention – for both parties. The statement was based on an oral agreement. Most oral contracts are legally binding. There are, however, some exceptions, depending on the design of the contract and the subject matter of the contract. In many cases, it is best to establish a written agreement to avoid litigation. In some situations, English law provides that an agreement must be concluded in a specific form to ensure security between the parties and also settle the matter for third parties who are not directly involved in the agreement. If you are entering into an oral agreement, it is a good idea to write down the terms of the agreement in order to try to avoid problems in the broad sense. . . .