Legal Question in Credit and Debt Law in Indiana

Is an oral agreement legally binding

I have a client who agreed to have me build a web site for her company. About half way through the project she paid an $1100 bill for work that had been completed. She commissioned me to do more work, we had a meeting and then she commissioned me to do MORE work. After two weeks had past I sent her a bill for the work completed to date, approx. $1500 and she is now refusing to pay. I filed in small claims court and her lawyer contacted me to see if I would settle for $750. I don't want to settle for that amount, but he said that since there was no contract, just a verbal agreement, and she is saying that I misrepresented the company and said I would do things that I didn't do that's all they are willing to pay. I know that I am in the right here, but I don't know if I can win without a written contract. A couple meetings were just her and myself but during a couple of meetings another of my employees were there. Can you give me any direction here, please.


Asked on 9/18/03, 4:47 pm

1 Answer from Attorneys
John Cook Dunn & Cook

Re: Is an oral agreement legally binding

An oral agreement is binding; however there are always inherent problems with them, such as faulty memories; disagreements on what was said or promised; and the typical who does the judge believe when it comes down to he-said, she-said statements. You could pursue it, but I do not think the benefits outweigh the costs that you will end up incurring. These costs are not so much financial, but are more inconvenient costs. The attorney on the other side will probably drag his feet, and if you do win in small claims court, the other party can always appeal the judgment to the superior court of your county, where it starts all over again from scratch.

If it were me, I would take the $750 and never do any work for the other party again. If you accept the $750, the attorney for the other side will probably have you sign a release, which is common in settlements. Good luck and you might want to think about using a standard service contract from now on. Contracts can be a pain, but in instances like this, they are worth their weight in gold.

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Answered on 9/20/03, 11:10 am


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