
mündlich
oral
Done through speaking; not written, but expressed or communicated by mouth.
Die Prüfung besteht aus einem schriftlichen und einem mündlichen Teil.
The exam consists of a written and an oral part.
oral / verbal
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oral
Done through speaking; not written, but expressed or communicated by mouth.
Die Prüfung besteht aus einem schriftlichen und einem mündlichen Teil.
The exam consists of a written and an oral part.
The word 'mündlich' (oral) derives directly from 'der Mund' (the mouth). The ending '-lich' turns the noun into an adjective and means something like 'in the manner of a mouth,' so spoken.
Wir haben eine mündliche Abmachung getroffen.
We made a verbal agreement.
'Mündlich' (oral) is very often used in fixed combinations, especially in education and law. Typical examples are 'mündliche Prüfung' (oral exam), 'mündliche Zusage' (verbal promise/assurance), 'mündliche Vereinbarung' (verbal agreement), or 'mündlicher Vertrag' (oral contract).
Eine mündliche Zusage ist zwar nett, aber ich hätte lieber etwas Schriftliches.
A verbal promise is nice, but I would prefer something in writing.
'Mündlich' (orally) can also be used as an adverb to describe a verb. It then answers the question 'How?'. It often appears with verbs of communication.
Bitte teilen Sie mir Ihre Entscheidung mündlich mit.
Please inform me of your decision orally.
oral
Mündlich and oral can describe an exam or communication conducted through speaking rather than writing. Mündlich is the neutral and generally common term, while oral sounds more technical. Use mündlich in everyday situations and oral mainly in a technical context.

Die Prüfung findet am Freitag mündlich und nicht schriftlich statt.
The exam will be conducted orally on Friday rather than in writing.
Die Sprachprüfung wird in einem kurzen oralen Gespräch durchgeführt.
The language exam is conducted as a short oral conversation.