Is there any way a verbal contract can be revoked/cancelled legally?, what are consumers/businesses rights?.?

Question

My Manager verbally agreed to electric supplier for 4 year contract, their rates are very expensive, is there any way to get out of the agreement, he has only just recovered from a stroke and the phonecall was very hard sell and caught him off guard, can anyone help?

Answer 1

An oral promise may amount to a valid contract provided there was (1) an offer and acceptance of an offer; (2) consideration given by one another in exchange for the undertaking (e.g. the electric supplier suffered benefit or detriment, or acted in reliance on the promise), and (3) finally intention to create legal relations.

1. Prima facie on these details, it seems there was only a promise here which is unenforceable in contract law.

But I am sure there were preparations made by the electric supplier as a result which could make the promise enforceable because there was consideration given.

2. You can argue there was no offer; or no acceptance of an offer; or there was no objective agreement (consensus ad idem)

3. The next argument would be to say if there was a valid contract, then it should be vitiated in equity because this was a "very hard sell" so you need further evidence that it amounts to economic duress. This will void the contract/make it voidable by the court.

4. Alternative arguments in a court that also may, or will, void the contract are:
- common mistake
- unilateral mistake
- misrepresentation
- undue influence
-illegality

5. Even if there was a contract, the court may attack the contract terms and seek to assess the reasonableness of the contract terms (including the rates) - Unfair Contract Terms Act, for example.

You should consult a solicitor/barrister urgently.

If the electric supplier seeks to enforce the contract and the manager does not discharge his obligations thereunder, so as to entitle the electric supplier to terminate the contract and claim damages in a county court for the breach, you would need to vigorously defend the claim there was no contract, or it was voidable for all of the above reasons.

Answer 2

A verbal contract isn`t worth much to begin with . Not legally anyways . If your manager was recovering from a stroke at the time , it`s easy to see that he may not have realized fully , or not at all what he was agreeing to .

Considering both facts , I`d say cancel out and if the other party wants to take him to court ......... go ahead . Your manager should bring a letter from his doctor specifying his stroke condition . This would be enough for any sensible judge to decide the case in your manager`s favour .

Answer 3

A verbal contract is not worth the paper it's written on! Seriously, there is usually a cooling off period when you can change your mind. Get some legal advice if you're worried but as you haven't signed anything I don't see how they can hold you to the agreement especially if you feel you were unduly coerced or bullied into the deal in the first place.
My mother sometimes agrees to things over the phone and then gets me to cancel it later! Best advice - tell the marketer that you may be interested but you will need to see something in wrting first. What could be fairer than that! (I once worked as a telemarketer)

Answer 4

If he agreed soon after the stroke then it shouldn't hold up in court because he can argue he wasn't 100% and thus not fit to agree to a contract.

"Very hard sell" and "only just recovered from a stroke" don't sound like a good match for a contract, sounds like some duress to me.

Answer 5

If your manager agreed to switch electricity supplier he can do this as all these contracts have a at least a 14day cooling off period. Simply ring the firm and say you do not wish to switch.

Answer 6

Verbal contracts are not really contracts. You can go back on anything verbally, you just might no longer be considered a man of your word.

Answer 7

A verbal contract is not worth the paper it is written on.