Full question:
What is it called when an entity trys to bill for an amount that is false? I know fraud is the simple answer. But is there another term when there is a business involved specifically when a verbal agreement was previously made. I have a company billing me for work after the fact for removal of rock and soil. The verbal agreement was that we would give them the extra site spoils for free if they provided their own dumptruck to haul away. Now they are trying to bill us 5 months later for $10,200. We do not have a written agreement. Please advise me if I should file a fraud suit now or try to resolove this with a letter only?
- Category: Contracts
- Subcategory: Oral
- Date:
- State: Arizona
Answer:
The situation you describe involves potential issues of breach of contract and possibly fraud. The outcome depends on the specific facts and evidence available, such as notes, emails, or witness testimony regarding the agreement.
An oral contract, like the one you have, is a spoken agreement that can be legally enforceable, but proving its existence and terms can be challenging. Generally, contracts require an offer, acceptance, and consideration (something of value exchanged). In your case, the agreement was to provide site spoils for free in exchange for the company hauling them away.
If the company is now trying to bill you for services that you believed were covered by your agreement, this could be considered a breach of contract. A breach occurs when one party fails to fulfill their contractual obligations, causing harm to the other party.
Filing a fraud suit may not be the best first step, especially if you lack written evidence. Instead, consider drafting a letter to the company outlining your understanding of the agreement and your position. This approach may lead to a resolution without escalating the matter to legal action.
In cases of fraud, you must prove that the other party intended to deceive you, which can be difficult without clear evidence. If you believe you were misled, you might explore that option later, but starting with communication could be more effective.
Keep in mind that oral contracts may have shorter statutes of limitations for enforcement, so acting promptly is advisable.
For more specific legal advice, consulting with a licensed attorney is recommended.
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.