Oral Contracts $500 for service, is it legal?

Question

I recently got charged for some service and did not agree to anything but the person is saying that i did agree upon it. There was nothing in writing about ANY charges what so ever or any discussion about charges. My question is for a service I thought $500 and up needs to go down in writing (written contract) by law. Am i right?.

Thanks for your help!

I live in Jersey

Answer 1

I am not aware of any law which states that a contract regarding the value of $500 or more must be in writing. The exception to this would be real estate and prperty.

However, it is very difficult to prove there was a contract with the essential elements for it to become binding, unless it is in writing.

For a contract to be valid you need an offer, an acceptance and consideration. The acceptance can only occur if you have knowledge to what you're agreeing to - you can't agree to something that you've been told costs $100 when there are additional charges that you are not aware of and were not clearly displayed (for instance a disclaimer or terms and conditions on a website). Further to this there must be consideration, that is in return for the money performance of the contract must occur.

As I do not know the details I obviously cannot comment on your case, however if there was no paperwork, it would be difficult for them to prove that you agreed to what they're alleging.

Although it's not law that it has to be in writing it is commonsense, so maybe ensure there is no paperwork which states the contrary prior to refusal to pay.

Answer 2

Well, it's always best to have a written contract, that way you can read and know what you are agreeing to, but if you have an oral contract, they work as good, but not as good as a written. So, if he tries to sue you for the money, their should be a slim chance of you having to pay him, because, unless he has it recorded that you said it, what proof does he really have, even if you said it or not? ;)

Answer 3

It depends upon which state you live in.

You indicated you live in New Jersey. That state honors oral contracts.

New Jersey websites:

Small claims court:
"TYPICAL CLAIMS FILED...
Breach of a written or oral contract. "
http://www.judiciary.state.nj.us/gloucester/dept/civil.htm

"This subsequent contract may be an oral agreement or may be implied from the conduct of the parties. It must show an agreement by the parties that the extra " 4.13 BUILDING CONTRACTS -- EXTRAS<
http://www.judiciary.state.nj.us/civil/charges/413.htm

"An oral agreement may suffice as would an agreement to terms in a record. Product descriptions may define the bargain."http://www.lawrev.state.nj.us/ucita/ucitamassmarketM110600.doc

This one applies only to real estate:
http://lis.njleg.state.nj.us/cgi-bin/om_isapi.dll?clientID=118390&infobase=statutes.nfo&record=%7B9BA7%7D&softpage=Document42

"Plaintiff has brought this case against his/her employer for breach of an oral contract of employment. Plaintiff claims that defendant's oral promises " fromhttp://www.judiciary.state.nj.us/civil/charges/213.htm

How to Sue in Small Claims Court - Non Motor Vehicle Case
"Contract: Your case involves a written or oral agreement between you and another"
http://www.judiciary.state.nj.us/prose/10151.pdf

Answer 4

While I would get a contract for a service costing $500, I do not believe one is necessary in most jurisdictions until you get to $1,000.

Answer 5

No contract in writing, you win.