Verbal contracts are fuzzy. They rely on reputation, and an investor's reputation won't take a substantial hit from a "he-said she-said" situation. Having the

Verbal contracts are fuzzy. They rely on reputation, and an investor's reputation won't take a substantial hit from a "he-said she-said" situation. Having the agreement recorded in writing might not be legally enforceable, but it makes it clear that there was a concrete agreement in the first place.