Legal Question in Business Law in California
I have been paying a fixed fee once a week for services to a non profit charitable organization. The services began last Spring and the fee has remained the same until I received a letter from the organization's Bussiness Office Manager the last week of March 2010 stating that I owe them money since they have decided to raise the fee retroactively to January 1, 2010. There was only a verbal agreement on fees and I have paid the same amount every week. Can they raise my fee retroactively and without any prior notice?
1 Answer from Attorneys
From what you said, no.
California Civil Code Section 1697 states that an oral contract may be modified if consented to by the parties and is in writing. Neither of these elements were present in your situation. Thus it appears that the non profit could not legally modify the oral contract.
Please contact my office if you need further assistance.
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