In addition to the three elements mentioned above, contracting parties must be able to do so. minors and persons with limited intellectual capacity are not considered competent; In some cases, if a party has accepted a contract under the influence of drugs or alcohol, this may be considered unenforceable. 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. A party makes an offer by offering – either in writing, orally, or sometimes simply – an exchange of something valuable (typically goods or services) for something of value (usually money). The offer must contain that an oral contract is not binding in Arizona if it is a job.