Legal Question in Business Law in California

Generally an exclusive dealing does not require a written agreement. However if the exclusive dealings falls within the California Civil Code Section 1624 then a written agreement is required. However, it is always a good idea to have a written agreement for any agreement.

Disclaimer: This communication does not create an attorney-client relationship and such a relationship can only be formed through a signed written agreement. This communication is not legal advice and should not be solely relied upon in making your legal decisions. Any situation depends on many different facts and specific laws that require an in-depth legal consultation to evaluate the best solution for your needs.

The other attorney is right on point here. The best rule is to get any agreement in writing. Consult with an attorney in your area for specifics.

Kevin B. Murphy, B.S., M.B.A., J.D. - Mr. Franchise

Franchise Attorney

NO, but how do you prove the terms of an oral agreement in a dispute? Good business requires a written agreement with all the terms. Pay a little now for proper drafted agreement, or pay a lot later for litigation.

This does not seem to be the kind of contract required to be in writing by the statute of frauds (Civil Code section 1624), and therefore could be enforced even though oral, although it is remotely possible the agreement might contain some term that would bring it within the statute.

An exclusive dealing agreement might possibly be invalid for some other reason, such as being unlawfully in restraint of trade.

The main problem, however, with business agreements that are not reduced to writing, is proving their existence and their terms in court.