He and Mike may have shook hands, but Bob must have a written sales contract signed by Mike to comply with the Fraud Act. If he did, he could sue Mike for enforcing the sales contract. States have laws that require certain treaties to be written to be applicable. This is documented in the Fraud Act. In the State of Pennsylvania, the following types of agreements must be in writing: after the first steps, the contracting parties understand and confirm the basic terms of the contract. In an oral contract, this could end with a handshake to “seal the deal.” Entrepreneurs are in daily contact with their colleagues, suppliers, customers and contractors as part of their activities. Often, a business interview may involve establishing or building an agreement between the two parties. But is an oral contract legally applicable? In the state of Pennsylvania, oral agreements must contain these essential requirements to be valid. Although oral contracts can be valid, the obvious disadvantage of using them is that they are difficult to enforce in the event of a dispute. Memories fade and memories differ, and it can be difficult to prove which version of the story is true..