Are Verbal Agreements Legally Binding in California?

Question from Perales, Are Verbal Agreements Legally Binding in California?

Answer from AI:

Understanding the Legality of Verbal Agreements

Verbal agreements, also known as oral contracts, can be legally binding in California, provided they meet certain criteria. The general rule under California law is that contracts do not need to be in writing to be enforceable. However, there are exceptions to this rule, which are outlined in the California Statute of Frauds (part of the California Civil Code). According to this statute, certain types of contracts must be in writing to be enforceable, such as contracts involving the sale of real estate, leases lasting longer than one year, and agreements that cannot be performed within one year.

For a verbal agreement to be considered binding, it must have:

• Offer and acceptance: One party must make a clear offer, and the other must accept it.
• Consideration: Something of value must be exchanged between the parties.
• Capacity: Both parties must have the legal capacity to enter into a contract.
• Intent: Both parties must intend to create a binding agreement.

Specifics of Your Situation

In your case, the verbal promises made by the broker regarding the billing of your credit card and the pickup of your vehicle are significant. If these promises were clear and agreed upon as part of the contract terms, they could potentially be enforceable. However, proving the content and the existence of verbal agreements can be challenging without written evidence or witnesses.

Steps to Address the Issue

Here are some steps you can take:

1. Review the written contract: Check if it includes any clauses about verbal modifications or additional terms not included in the written contract.
2. Gather evidence: Collect any communications (emails, texts, notes from phone calls) that might support your claim about the verbal agreements.
3. Contact the broker: Discuss the discrepancy and remind them of the agreed terms. Sometimes, issues can be resolved amicably without legal intervention.
4. Charge dispute: If the broker does not resolve the issue, consider contacting your credit card company to dispute the charge based on the service terms not being met as agreed.
5. Legal advice: Consult with a lawyer who specializes in contract law. They can provide guidance based on the specifics of your case and help you understand your legal options.

Regarding Stress and Damages

While breach of contract can be frustrating and stressful, compensation for stress or emotional distress is generally not recoverable in simple breach of contract cases unless there is accompanying physical harm or the contract breach is also a tort (a civil wrong like fraud). If the broker’s actions caused significant stress that impacted your health, discussing this with your attorney is crucial as they can assess whether any tort claims might be applicable.

For more detailed information on the enforceability of verbal agreements, you can visit the California Legislative Information website.

Remember: This information is general in nature and not a substitute for legal advice. Specific legal advice should be sought for particular issues.