In any sort of business or commercial dispute, there is a high probability that certain written documents will play an important role. Sometimes, though, it’s what isn’t written down that may hold the key to a successful case. In some situation, oral contracts may be valid and binding. In order for that to happen, though, there must be proof that a consummated agreement (in other words, a “meeting of the minds”) took place. Whether you are seeking to enforce or to oppose the enforcement of an oral contract in your business litigation, it helps to have the resources of skilled Georgia commercial debt collection counsel on your case.
One recent case in which the enforceability of an oral contract was at issue involved a farm and its agricultural products supplier. The farming business was owned by a husband and wife, and the wife’s father, T.E., signed a personal guaranty with the supply company guaranteeing payment of all of the farming company’s debts with the supply company. The wife’s father eventually decided he wanted to get out of farming and did not intend to continue guaranteeing the farm’s debts. He allegedly told the supply company’s branch manager about this decision, and the manager allegedly was “in total agreement” about the decision. No written document to this effect was ever produced at trial, however.
The farm racked up debts in excess of $200,000. The farm eventually missed payments, and the supply company asked T.E. to pay, based upon his guarantees. The man refused, and the supply company sued. The trial court eventually granted a summary judgment for the guarantor, which meant that the supply company lost its case before it even made it to trial. The judge concluded that T.E. had sufficiently established that he had rescinded his personal guaranty.