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Dimitry K., Esq.
Dimitry K., Esq., Attorney
Category: Business Law
Satisfied Customers: 41220
Experience:  Run my own successful business/contract law practice.
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We are doing due diligence on creating a supporting system

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We are doing due diligence on creating a supporting system and Business Plan for a new Home Health Care business. We have an issue with a business stating that just because we talked to them about what we are looking for, that we have a verbal contract. They provided a Statement of Work that was not signed not had any money be passed between the two companies. They say we own $5000 because they already had their investor pay for our invoice upfront without our consent, in this situation is there such a thing as a verbal contract?
Submitted: 5 years ago.
Category: Business Law
Expert:  Dimitry K., Esq. replied 5 years ago.
Thank you for your question.

There is such a thing as a "verbal contract" but your situation does not appear to be one. A verbal agreement is just like any agreement in that it requires a "meeting of the minds", offer, acceptance of that offer, mutual consideration, and no defenses to formation. If you were simply speaking about a possible contract, that is not yet a contract but negotiation or a possible "offer to deal". There does not appear to be any meeting of the minds here because nothing in the facts show that you accepted their terms, and therefore there is no mutuality. While they may claim you owe money, if you never accepted their terms, there is no contract.

Good luck.
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