Full question:
Last year (January of 2006) my brother made an oral agreement with me that I would have a 50 percent partnership in the gas station business. Out of the net profits, my share would go towards paying off the business. I even paid him 100,000 dollars towards the cost of the business. A few days back my friend’s family died in a car accident and now I am very worried. What will happen in case my brother dies? How will his wife decide or the kids know what to do? I am very concerned because we don’t have written proof of our agreement.
- Category: Contracts
- Date:
- State: California
Answer:
Oral contracts can be valid and enforceable, but some agreements must be in writing to be enforceable in court. These requirements are outlined in statutes of fraud, which specify that certain contracts must be written and signed by the party being sued for breach of contract. This does not have to be a formal contract; it can be a simple letter or memorandum that details the agreement and is signed by the relevant party.
In your case, it would be wise for you and your brother to create a written memorandum that outlines your oral agreement regarding the business. This document should be signed by both of you and dated. It will help clarify your partnership and protect your interests in the event of unforeseen circumstances, such as your brother's passing.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.