What can I do about a breach of a verbal agreement?

Get Legal Help Today

 Secured with SHA-256 Encryption

What can I do about a breach of a verbal agreement?

I manage one area of a company that has been very profitable. The managers of the other areas in the company lost a lot of money. The owner legally split the company into 2 companies. The one I manage is the new one that is under a different name. I bought into the company that I manage with only a verbal agreement. The owner immediatley took my investment and used it to pay on the other company’s debt. It was agreed that money was to be used to make the one I manage a stand-alone company. Then the owner started selling off the assets of the new company to “save” the other one and never gave me distribution. Is there anything I can do?

Asked on February 14, 2013 under Business Law, Wyoming

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

Speak with an attorney. As a general rule, an oral or verbal agreement is legally enforceable, just as a written contract would be--though, of course, it can be much more difficult to prove the existence and terms of an oral agreement, if the other party to the contract disputes your version. There are some contracts or agreements, however which must be in writing to be enforceable: those involving real estate, or agreements to answer for the debts of another, or sometimes those for large sums of money or which cannot be completed within one year. Speak with a lawyer, who can analyze the situation and determine if you have an enforceable agreement; if you do, then you may be able to sue to enforce its terms.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption