Oregon Construction Contractors (CCB) Practice Test

What happens if a dispute arises from an oral agreement?

1. It is easy to recall terms

2. It is difficult to prove agreed terms

3. It can be easily rectified

4. A mediator must be involved

The correct answer is: It is difficult to prove agreed terms

When a dispute arises from an oral agreement, it can be quite challenging to prove the agreed terms, making the second choice the most accurate. Oral agreements lack the physical documentation that written contracts provide, which typically outlines the specific obligations and understandings of each party. Because there is no formal record, each party may have different recollections of the terms, leading to ambiguity and uncertainty. This can make it difficult to demonstrate what was actually agreed upon in a legal context, as there may not be any witnesses or evidence to support one party's version over the other. In contrast, recalling terms can be difficult for all parties involved in an oral agreement, which speaks to the challenge rather than an ease of recalling terms. Rectifying the situation often requires negotiations or mediation, but it is not inherently easy. Moreover, involving a mediator is not a requirement for all disputes stemming from oral agreements; rather, it's a possible option if both parties agree to seek that route.