In California, there are two types of contracts. When we think about contracts we usually think about written contracts; however, parties can create an oral contract as well.
Certain agreements must be in writing in order to be enforceable. This doctrine is called the Statute of Frauds. California’s Statute of Frauds is codified in Civil Code Section 1624. A few examples of the agreements that must be in writing are those contracts relating to the sale of real property and an agreement that cannot be completed in a year from the date of the agreement. Even if your agreement falls within the Statute of Frauds, it may be possible to get around this requirement. Obviously, getting around the Statue of Frauds depends on the specifics of your situation.
If you have an oral agreement with another party you can still sue in court. In addition to suing on the oral contract, California law provides various causes of action that allow you to sue for reasonable value of the good and services provided.
To be safe, every agreement you or your company has with any third party should be memorialized in writing because even if you never plan on suing, it is always a solid business practice to have written agreements so everyone in the transaction knows what is expected of him or the other party.
If you or your business needs any assistance in drafting, negotiating or enforcing any business agreements, feel free to contact us.
The information on this blog is not legal advice, nor is it intended to create an attorney-client relationship. Legal questions should be directed to a lawyer of your own choosing.
Scott D. Wu is an attorney licensed to practice in
