Can I sue for breach of contract?
Just like with a written contract, you can sue for breach of contract if there is an oral contract. It’s a frequent misperception that contracts have to be in writing in order to be enforceable. Drafting a contract is a smart move, mostly because it will serve as documentation of the agreement. Another option is to videotape the contract, as this can be accepted in court proceedings as equally valid as written documentation.
Few topics under state law necessitate a written contract. For example, any agreements pertaining to real estate and any activity that needs to happen within a year need to be in writing. The Statute of Frauds is responsible for this exception and also mandates that the following subjects be in writing:
- Contracts pertaining to the sale of a land interest.
- Contracts pertaining to performances that take place over a year.
- Contracts that take on debts owed by third parties.
- Contracts pertaining to the sale of products for more than $500.
- Contracts that include commitments from an estate’s executors or administrators.
On the other hand, a contract’s terms can be created, modified, or altered nonverbally just by your actions. You may give up your claim to the initial amount without ever explicitly saying so if, for instance, you promise to provide a firm with 100 products for a specific price every month but eventually wind up accepting less money. This is because you continued to deliver the quantity of items and took the lower payment.
Can you sue for breach of a verbal contract?
It is possible to file a lawsuit for verbal contract breach even in cases where there was no physical handshake. It is highly probable that an enforceable agreement was established between the parties if one of them took up the other’s services. The party that profited from the other’s services should compensate the party that provided them, so long as one party obtained such services.
Verbal contracts are harder to prove, even if they have the same legal standing as written ones. Legally speaking, a handshake is meaningless, but having a witness can help your case. When one party has completed the agreed-upon duty in full, that is one factor that can bolster the claim.
Verbal contracts are enforceable in California. A plaintiff must present evidence that both parties accepted a partnership and that there were no ambiguities in order to establish a breach of contract. Verbal contracts are subject to the same examination as written ones, which includes offer, acceptance, consideration, and term speculation. Additionally, the party defending the verbal contract must present proof of its existence.
Three requirements must be met by the aggrieved party in order to prove a breach of contract for a verbal agreement:
- A legitimate contract was made.
- There was a material violation.
- There were losses.
In successful breach of contract cases, the court may award compensatory damages to cover the plaintiff’s losses.
Particular Concerns in Cases of Verbal Contract Breach
The Appellate Division of the New York Supreme Court provided insight into what happens when relatives and friends disagree about verbal contracts. Let’s examine the case of Crozier v. Sauers.
The defendant, Sauers, was friends with the plaintiff and his spouse. According to the plaintiff, Sauers requested a $180,000 loan from him in order to grow the defendant’s auto glass business. According to Sauers, the loan was intended to assist him in buying an already-existing car glass business and to serve as a down payment for two more corporate facilities.
According to the documents and trial record, the defendant’s company, T&M Corp., was the recipient of four checks written by the plaintiff. The defendant utilized the corporate account to purchase the company, but not the other two buildings, after depositing the checks into it. The plaintiff made no argument or offered any contradictory evidence to the defendant’s testimony that the remaining funds were used for company purposes.
In response, the plaintiff claimed that the defendant had consented, orally, to be held accountable for the loan in the event that the business was unable to repay it. Because the defendant was accountable for the remaining loan debt, the court decided in favor of the plaintiff. Because the money was used for company objectives, there was no breach of contract.
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Amit2025-03-28 04:26:542025-03-28 04:26:56Best Free Payroll Software for Small Businesses and Startups in 2025
