Is a recorded verbal contract with an home oil delivery company valid even though it will not start for another month?
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Is a recorded verbal contract with an home oil delivery company valid even though it will not start for another month?
I wanted to cancel that agreement since oil price I locked into is so much higher since oil price drop but I am told I have to pay $599 termination fee even though I am not switching companies.
Asked on December 16, 2014 under Business Law, New Jersey
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 9 years ago | Contributor
An oral contract is enforceable. However, it's only enforceable as to the specific terms actually agreed to--that is, additional terms cannot be added later. So if:
1) There was no duration specified in the agreement (e.g. "you are agreeing to a one-year delivery contract, correct? Yes."), then it may be terminated at will, and you'd just pay for services, goods, etc. provided to date or which have already been non-refundably ordered to date.
2) If a termination fee was no mentioned and agreed to, you would not be liable for a termination fee.
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