There are certain instances where a writing is needed, as discussed below. However, there are exceptions. Our lawyers can help you navigate those make a claim or advance a defense, when possible.
Some of the most significant and high profile business people insist upon deals involving only a hand shake (sometimes called “verbal agreements” or verbal contracts, when a person means “oral). We have had success enforcing purely oral agreements. Like other states, Pennsylvania has something call the “statute of frauds” which is designed to prevent fraud by requiring that certain types of agreements be in writing:
Purchase of real estate or transfer any interest in real estate (other than a lease),
Plus, there may be other types of agreement that, by statute, must be in writing such as home improvement contracts.
Certain Challenges
Although certain oral agreement are enforceable, there are challenges and defenses in terms of proof. Also, some types of contracts must always be in writing. (However, as discussed below, there may be other ways to recover relative to an unenforceable oral contract.)
Requirement of a Writing
As mentioned, pursuant to Pennsylvania’s “statute of frauds,” certain contracts have to be in writing. Often times, the same also applies for modifications of a contract if the original agreement was required to have been in writing. Often, with email and fax being so pervasive, there is usually some form of writing and the issue is whether the writing that exists is sufficient.
Plus, even if the parties endorse a written agreement that satisfied the statute of frauds, the writing may lack clarity or allow for oral modification by failing to provide that any modification be in writing.
Contracts for home improvement entered into on or after July 1, 2009 must be in writing to be enforceable against the home owner.
Oral Modification of Written Contracts
At times, a written contract will provide: this agreement may not be modified except in writing. Does this mean that a writing is needed to modify the agreement? The answer is no, unless the contract pertains to the sale of goods. We deal with this issue on a separate page on this site, regarding modification, click here.
Other Options
If the oral agreement is not enforceable as “contract,” it may still be enforceable. Or, there may be claim for unjust enrichment or “promissory estoppel,” if no valid contract exists. Hence, the existence of writing (or lack of one) is just the starting point for contract evaluation.
