Paige Kurtz
We’ve seen many a question posted on legal forums that look like this: “I gave my brother $3,000 to buy a car and he promised to pay me back, but hasn’t. There is no contract. What should I do?”
Another example is, “I told John I would pay him $50.00 to mow my yard. He never told me he was going to do it. I hired someone else to do it. When they got there, the grass was already cut. What do I do?”
Contracts come in all shapes and sizes, and that includes those contracts that don’t appear to exist at all.
Oral contracts are contracts. They are just as valid as a written contract in most cases. Just because the parties didn’t write it down and sign it, doesn’t mean they didn’t intend for there to be a contract and it doesn’t mean that the parties aren’t acting as if there is a contract. It is always better to put it in writing.
But if you don’t, all hope is not lost. It just may be more difficult to prove the contract and the terms of the contract. In the example above, when did the brother promise to pay the money back? It is not obvious, but there may have been more to this discussion. Maybe he said that he would pay it back as soon as he got a job, which he now has.
Even with friends and family, write down your agreement and your intentions while everyone is inclined to do so. When people get in difficult situations, it is not so easy to communicate and the relationship can break down quickly. If someone is not willing to sign on the dotted line, then you probably shouldn’t go down this road.
Another type of unwritten contract is an implied contract. This occurs when the court finds that there is a contract between the parties so that one party isn’t put in a better position than they would have been otherwise.
In the above example, though John didn’t verbally communicate, he indicated his agreement to the contract by his conduct: mowing the lawn. If you don’t pay for the services, you will be getting the benefit of John’s services for free, otherwise known as unjust enrichment.
There are ten types of contracts in North Carolina that must be in writing. This is known as the Statute of Frauds.
Some examples are real estate contracts, leases for more than one year and contracts for the sale of goods that exceed $500.00.
Without a writing, you would be unable to enforce the contract if you believe the other party had breached its terms. Don’t make the mistake of not protecting your rights.
Consult an experienced attorney at Kurtz Law to find out if your contract needs to be in writing!
