Legal Question in Business Law in Pennsylvania

Compensation collection

Do oral agreements hold up in court? Worked sales with compensation deal of salary plus commission. Had oral agreement, hand shake. Left company, was promised payment. Nothing paid.


Asked on 3/24/08, 3:07 pm

1 Answer from Attorneys

Maxwell S. Kennerly The Beasley Firm

Re: Compensation collection

In general, yes. The only agreements that, as a matter of law, may not be oral are those described by the "statute of frauds." In Pennsylvania that includes a handful of specific types of transactions, primarily those involving real estate or contracts for more than one year in duration.

The answer in your particular situation depends upon the specifics of the agreement. It may, or may not, fall within the statute of frauds. In general, though, the fact that an agreement is oral does not make it any less binding, it just makes it a little bit harder to prove in court at trial, because the jury/judge has to take you entirely at your word.

If you like, you can contact me and I will review your case, or you can call your local county bar association for references. Or, of course, you can talk to friends and family and see if any of them know a lawyer that they trust and/or respect.

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Answered on 3/24/08, 3:28 pm


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