Montana Law provides that contracts may be oral except those that are specifically required by statute to be in writing. Certain contracts such as leases for longer than 1 year, for the sale of real property or an interest therein, must be in writing. Real estate broker's contracts must be in writing. Several other contracts must also be in writing. Although most contracts are not required to be in writing, the law favors written contracts.
Oral contracts are difficult to prove and enforce.
While proving and enforcing Oral contracts is difficult, it is not impossible. If the subject of the contract is important to you monetarily or otherwise, you should contact an attorney to prepare a written and acknowledged contract. An attorney should be able to include important terms in the agreement to protect your interests. Lending money creates a contractual obligation which is referred to as a Debt. The contract itself is referred to as a promissory note.