Legal Question in Business Law in California

Re: web hosting

not unless the oral agreement provided for such payment.

Re: web hosting

Oral agreements are valid for most ordinary business purposes, an important exception being conveyance of real estate. There are problems in enforcement of oral agreements, however. These include difficulty of proving their terms in court and the statute of limitations. Here, Code of Civil Procedure section 339 probably provides the applicable limitations period: two years.

Therefore, the chances are that any portion of the amount owing that is older than two years cannot be recovered, and maybe none at all if the contract is treated as three years old and indivisible.

The aggrieved party should investigate taking legal action at once, if ever, to preserve as much of the potential recovery as possible. On the other hand, a lawyer upon examining the facts and evidence may advise that the case is too weak and the prospective recovery too small to warrant the cost of a suit.