Legal Question in Business Law in New York

oral contract law

In August 07, I offered a tutoring

student of mine a discount if he

wanted to prepay for a package of

hours for the remaining sessions he

wanted until the December exam. I

told him specifically that this is only

to his benefit if he knew he wanted

the sessions, and if he did, we would

make up a schedule for the sessions

and I would give him a discount for

buying them in advance. He agreed,

we made up a schedule to last until

December, and he paid in full. After

six sessions, he began postponing

sessions, until eventually, December

1st arrived (test day) and he only

completed 6 of 26 pre-paid sessions.

Dec 3rd, he asked me for a ''refund''

for the sessions he chose not to

complete. I believe I do not owe him

the sessions, as he guaranteed me

the business in exchange for the

discount. He didnt sign anything to

that effect, and now he claims he

didnt know he couldnt get a discount.

Do I owe him the money in return?

In my eyes, if he could potentially

cancel at any time, then I would

have to wait until after each

completed session to use the money,

thereby eliminating any incentive for

a discount or a prepay for that

matter. thank you

very much!!


Asked on 3/11/08, 2:24 pm

1 Answer from Attorneys
Mark S. Moroknek Kelly & Curtis, PLLC.

Re: oral contract law

This actually depends on how much is involved. The statute of frauds applies to agreements over $500. If the amount in question is greater then $500 the terms of the agreement should have been in writing, and signed by both to be enforceable.

Practically, I agree that you should not have to return the funds. Depending on whether it is or isn't over $500, you might wish to offer him a small amount.

Read more
Answered on 3/11/08, 5:12 pm


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