Can a person be held to an oral promise?
Question Details:
My mother bought a car for my son. He paid her, in cash, for half of the cost of the car in monthly payments. She has carried the insurance on the car. She told him, after he had paid half of the cost of the car, that he did not need to pay her anymore. She said that she would sign the car over into his name when he obtained his own insurance on the car. The car is in her name as she financed the car and he just paid her cash back to "buy" the car from her. Can she be legally held to this promise or is there legal recourse to recoup the money he paid her?
Oral contracts for the sale of goods for more than $500 must be in writing or they are not enforceable. However, this rule will not apply if there is substantial performance by both parties reflecting the terms of the agreement. In this case, the car is a good and is therefore, subject to this rule. the fact that the parties performed their respective obligations under the agreement demonstrates that the parties wanted to be bound by the terms of their agreement. Becasue the son paid mom back for the car, she is obligated to now sign the title over to him once he gets insurance. if she fails to turn over the car, he may sue her to recoup his money as she breached the contract. I would however, try to resolve this without litigation as no judge wants to hear a family dispute like this.

Are you a lawyer?
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