Originally Posted by Bluebird
If you don't have anything in writing and signed by both parties, no matter which country you are in, the Law is the same - nothing in writing means no contract no matter how many receipts etc you produce.
I just want to clear up some confusion here, since I've seen it repeated twice in this thread.
In the US, a verbal contract IS legally binding. It does NOT have to be in writing to be a contract.
However, the challenge becomes proving a verbal contract. It might require credible witnesses, or tape recordings, or some other method that is frequently not available. So it is always best to protect yourself with a written contract that can later serve as proof. But generally speaking verbal contracts are still legally binding.