Full question:
I am in process to buy a B.P. gas station, but the supply gas agreement will not write the rack plus price in the contract. They want me to trust them, that they will give me the best dealer price. By doing that am I protected if they over charged me on the price? Or not and if so how.
- Category: Contracts
- Subcategory: Breach of Contract
- Date:
- State: Wisconsin
Answer:
Oral agreements can be hard to enforce, often relying on one person's word against another's. If a party is trustworthy, they should be willing to put the agreement in writing. The terms of your contract with the sellers will define your rights and obligations, as well as theirs.
If you need to use the legal system to resolve a dispute, it’s important to understand contract law. Contracts are legally enforceable agreements that create obligations for both parties. An oral contract, made verbally without written documentation, can be enforced but is more challenging to prove in terms of existence and specific terms. Additionally, the time limit to sue for breach of an oral contract is usually shorter than for a written one.
In the event of a breach, you may seek remedies such as money damages, restitution, rescission, reformation, or specific performance. Money damages compensate for financial losses caused by the breach. Restitution aims to return you to the position you were in before the contract. Rescission cancels the contract, while reformation allows for changes to correct inequities. Specific performance compels a party to fulfill their contractual duties when monetary damages are insufficient.
Promissory estoppel may apply if you relied on a promise that led you to take action or forbearance, and enforcing the promise is necessary to prevent injustice. This requires showing reasonable reliance, which is assessed on a case-by-case basis.
In summary, without a written agreement, you may have limited protection against price overcharging, making it crucial to document your agreement in writing.
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.