Oral contracts can be applied if they are properly concluded in front of witnesses. For example, texaco made a higher bid in 1984, after Getty Oil was sold to Pennzoil in a handshake deal, legally binding under New York law, and the company was sold to Texaco. (Although the case was tried in Texas, New York law was in effect.) Pennzoil filed a complaint for unauthorized breach of the oral contract, which was upheld by the court and subsidized $11.1 billion in damages, which were later reduced to $9.1 billion (but were increased by interest and penalties). [3] The document contains all the important features such as the parties, the requirements of each party to the contract and even penalties for non-compliance with the terms of the agreement.