The above quotes are only a small part of the rich law and laws relating to the applicability of oral contracts in California. Suffice it to say that anyone who feels that a binding oral agreement could exist should obtain competent legal assistance to determine whether this is the case and not consider that a single letter can engage the parties in the areas that normally need to be written. Armed with this knowledge, if you are in a situation where you are unfulfilled in reaching a formal agreement, you can nevertheless take steps to commemorate the oral agreement in writing. Before you start sending text messages and emails instead of formal written agreements, you need to consider the following reasons why written contracts are better: the status of U.S. fraud requires agreements that must be entered into in writing to be considered enforceable. The following transactions are covered by the Fraud Act: the parties, both of which are reasonable, should freely accept the terms of the agreement, i.e. without influence, coercion, coercion or incorrect presentation of facts. The nephew and aunt accept the terms of the contract without putting pressure on each other and with the intention of fulfilling their obligations. Contractual terms must not be presented in a vague, incomplete or erroneous manner.
In other words, there should be an agreement on who the contracting parties are, on each party`s obligations, on the price to be paid and on the purpose of the contract. The conditions between aunt and nephew are very clear; the aunt lends $200 to the nephew for the purchase of a new tire (and nothing else) provided he reseals her 200 dollars at some point (for example. B when he receives his next cheque). Just like the aunt in our imaginary scenario, you`re probably better off documenting a written agreement. Something as simple as a promised note, detailing the nephew`s promise to repay his aunt, could have avoided any quarrel over their agreement. Finally, it is less difficult to ask family members for a written loan than to bring them to justice. If an oral contract does not interfere with one or more elements of a valid contract, it is likely that a court will declare the agreement inconclusive and unenforceable.