Legal Question in Business Law in Maryland
Unwritten contact law
In the State of Maryland is an unwritten ''Gentlemans Agreement'' supportable in court in a contract dispute?
2 Answers from Attorneys
Re: Unwritten contact law
In general, as long as there is an exchange of promises and you can show consideration given for those promises, you have an enforceable contract.
Re: Unwritten Contacts and Enforcement
It all depends. Certain contractual matters must be in writing to take an
action for enforcement. These matters are referred to as those falling under the
Statute of Frauds. This statute has nothing to do with fraud and is more related to the competency of evidence
where disputes arise. Things like performance that cannot be rendered within a year and sales of land must be in writing to
seek enforcement on the contract. This is not to say that there are no other actions available as an action in equity remains despite
there not being contractual actions. Other matters are required by selected statutes to be in writing; however, the lack of a writing and enforceability vary
based on statute. A good example on the latter point is insurance contracts.
Nontheless, many subjects can and are contracted daily without a written contract. Enforcement in contract is viable for these matters. However, the plaintiff bears the burden of proving
the elements of a contract where an enforcement action is taken in court. The elements are consideration, meeting of minds, arms length dealing, and various stipulations as to performance such as
the amount of payment, time of payment, terms of performance, etc.
If you have an unwritten contract which is not being honored, you may have a remedy. Depending on the relative importance of the matter, you may want to consider consulting with an attorney.
G. Joseph Holthaus III
(410) 799-9002
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