I Gave My Word: Difference between revisions

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*** The thing about oral contracts is that you don't have any evidence of agreements and promises. If it's one party's word against the other, barring any witnesses to support one side or the other, courts have no way to intervene.

* Samuel Goldwyn said, "An oral contract is as good as the paper it's written on," but this is not always the case. Oral contracts, when done correctly before witnesses, can be enforced. For example, in 1984 after Getty Oil was sold to Pennzoil in a handshake deal, Texaco made a higher offer, and the company was sold to Texaco. Pennzoil filed a lawsuit alleging tortuous interference with this oral contract, which the court upheld and awarded $11.1 billion in damages, later reduced to $9.1 billion, but increased again by interest and penalties.

* The statute of frauds refers to the requirement that certain kinds of contracts be memorialized in a signed writing with sufficient content to evidence the contract. Traditionally, the statute of frauds requires a signed writing in the following circumstances:

* The statute of frauds{{where}} refers to the requirement that certain kinds of contracts be memorialized in a signed writing with sufficient content to evidence the contract. Traditionally, the statute of frauds requires a signed writing in the following circumstances:

** Contracts in consideration of marriage. This provision covers prenuptial agreements.

** Contracts which cannot be performed within one year. However, contracts of indefinite duration do not fall under the statute of frauds regardless of how long the performance actually takes.