Is a recorded verbal contract with an home oil delivery company valid even though it will not start for another month?

Get Legal Help Today

 Secured with SHA-256 Encryption

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 6 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.


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