However, performance also requires that a reasonable person assume, in the circumstances, that an agreement is a mutual contract, and that is the standard that a court uses. It wouldn`t necessarily matter if Joe didn`t think there was a mutual agreement, if a reasonable person believed there was one. ABC herby employees enter into a mutual agreement to work as a team, support each other and do everything in their power to carry out the next development project in cycle #1 from January 1 to February 16, 2010. Verbal agreements can be applied in the same way as written agreements, but it is obviously easier to apply a written agreement. The agreed terms are black and white and are not open to an interpretation “he said she said”. In the law, the concept is somewhat vague.