Legal Question in Business Law in New York

Is a Voice recorded agreement enforceable?

In August I verbally committed to a locked-in price for home oil delivery for the next year at $2.93. Shortly after the prices dropped and are now around 2.10 for cash delivery. The oil company recorded my conversation agreeing to the 1-year deal and not accepting oil deliveries from anyone else. If I cancel I have to pay $300. Now I am trying to get out of that deal and have the price reduced, but they will not offer me a lower price since they already 'bought the oil'. They offered me $100 worth of coupons for the oil and a free service contract, but I prefer to reduce the oil price.

I asked for the recording and they were able to play it back within 10 minutes - it is a verbal agreement. I never signed any paperwork; they did follow up with a letter confirming the details.

Is this verbal agreement enforceable? Do I have any options to not pay the $300 penalty fee?

Thank you very much

Peter


Asked on 11/17/06, 4:27 pm

2 Answers from Attorneys
Robert R. Groezinger GroezingerLaw P.C.

Re: Is a Voice recorded agreement enforceable?

There is no law that states that an oral agreement is not enforceable, excepting certain situations.

Good Luck

RRG

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Answered on 11/17/06, 5:41 pm
David Simon Hogan & Rossi

Re: Is a Voice recorded agreement enforceable?

Oral contracts are, in fact, enforceable. The exception is when the subject matter is covered by the statute of frauds - for matters such as real estate sales, negotiable instruments, etc.

You should speak with an attorney, however, regarding the exact substance of the conversation to determine whether there was an actual contract created. In order to be a contract, there must be certain requirements met, most basic being that there was mutual assent to be bound by the same terms.

Even if it is not a "contract" in the technical sense, they may have a case for promissory estoppel, which is a fancy way of saying that you made a promise and they relied on it to their detriment. Their reliance must be reasonable under the circumstances. They may have a duty, however, to mitigate their damages.

Ask them to play the recording again and tape it, then share it with your lawyer for the best advice.

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Answered on 11/17/06, 4:39 pm


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