Verbal Credit Agreement

People have been entering into “handshake” agreements for centuries, and in many cases, oral agreements are as valid as written contracts. California law typically states that any contract may be oral, except for those expressly required by law in writing. If the person avoids your call, send them a letter reminding them of the loan, setting out the terms of your oral agreement, and asking them to pay. This type of credence is an essential condition for bringing debt in some states before a small claims court. Even if he does not respond, it will serve as proof of the terms of your agreement. If he doesn`t respond in a few weeks, you should consider legal action. Sometimes an oral agreement is reached and the parties intend to record the terms later in a document, but for one reason or another, this has not been done. However, the oral agreement remains binding. If you have an oral contract that needs to be enforced in Massachusetts, the Katz Law Group can help you ensure that the terms of your agreement are met and that you get the compensation to which you are entitled.

Contact us today for a consultation. Our lawyers represent companies in Worcester, Marlborough, Framingham and beyond. If you want to make a quick and simple deal with another company or person, you can choose to use one of these free contract forms that circulate on the Internet. If you plan to use a free contract form, read these reasons for not using free contract forms. Too often, in verbal contractual situations, the evidence turns into a “he said said” situation, making it difficult to know exactly what was agreed between the parties to the oral contract. As a general rule, the parties do not agree on the terms of the contract or how they should be interpreted. Samuel Goldwyn`s famous joke that “an oral contract is not worth the paper on which it is written” does not, however, reflect the true nature of contract law. An oral contract is a valid contract, with the exception of certain exceptions such as ownership or warranty agreements. .