Sounds like I won't be making any verbal agreements with people from long island.. Just kidding but how embarrassing is that here on OSO we preach honoring your word then a member comes on here and he or she tells us they do not want to honor their word.

:bsflag:


Chris

That's not entirely true. What is being discussed here isn't "delivery," and it doesn't matter that they won't deliver or ship the oil until the written contract is signed. What's being discussed is whether or not a contract was formed (a contract is different than an "agreement"). To be exempt from this contract on its face the buyer would basically have to lie and say that they never made the deal in the first place, however, being subject to the oral contract and breaking it leaves the Buyer in the exact same place fundamentally - off of the hook.

I guaranty you there wasn't a liquidated damages provision in the oral contract, and the $399 cancellation fee wasn't part of the initial bargain. If the Buyer cancels and they try to collect he could always argue that he never agreed to a liquidated damages provision, and that it is unenforceable to him, forcing the oil company to prove their damages in court (and it would cost more for them to fight this than to let it go). So, ultimately, there was a contract, it is enforceable (but not with specific performance - making the Buyer actually purchase the oil), but it would cost the oil company more to fight the case than it would recover in damages so the Buyer should be off of the hook, and in no way should be the Buyer be subject to the $399 cancellation fee.

That's what I thought too - the $399 cancellation fee would have had to be part of the contract to be enforceable. I bet there is a credit card on file that will be getting a $399 charge to it pretty soon though unless something is done to stop it.

Let's reverse the roles here. Let's say you made a verbal agreement that you were very happy with, and a couple of days later the oil company calls you and says they changed their mind, the price is now double or they can't make your delivery schedule or something, but basically they want out of the contract.

Would you be pissed and raising hell with them saying you had a contact?

Legal or not, you made a deal with these guys, stand by it and switch next year.

I wouldn't have posted it on here. Could have played he said/she said, but now it's in writing.

I'm not an attorney, but in general I think you are bound by the contract. Its my understanding that written agreement requirements only apply to contracts that are longer than one year.

Is there any honor left anywhere?
And why does this seem to occur in boaters more than anything?

A career in law enforcement does not make me an attorney, but I have spent enough time in court with them to tell you #1 You are legally bound, a verbal contract is just as solid as a written. Your word is your signature and your honor. #2 The company has lawyers on salary for crap like this so they will have no problem hauling you to small claims court, depending on total $ of suit. #3 You will have to pay an attorney out of your pocket and you still will loose.

My advice, revert back to a dying trait amongst men in this country. Own up to your word, admit to yourself you screwed up and that you have learned a valuable life lesson here. Plus why burn a bridge, what if in two years they are the cheapest company around, you really think they will do business with you. If more people would just be responsible and honorable this nation would not be in such poor status.

Do you also now have an verbal agreement with this 2nd company, thinking you'd just call and cancel the one with the 1st company?

That's be a pickle, 2 verbal agreements.

I can tell you for a fact that your verbal agreement is binding. If they want to pursue this they CAN take you to court over it.