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Old 08-11-2018, 11:08 AM   #1
Hsr 44
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Default Oral contract governing three year period?

New York

Is an oral contract that is supposed to last three years valid and binding in NY?

Isn't there some statute of frauds or some one year limit or something that invalidates oral agreements that supposedly go over one year or so?

I am getting informal conflicting reports on this but nobody really knows for sure???
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Old 08-11-2018, 12:41 PM   #2
adjusterjack
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Default Re: Oral contract governing three year period?

Yes. There is a NY Statute of Frauds. It came up instantly as the first item in a google search.

https://codes.findlaw.com/ny/general...ect-5-701.html

And, yes, most contracts for more than a year have to be in writing. But, as you can see by reading the statute, there are some exceptions.

And there are also a variety of business arrangements governed by their own statutes that could also be exceptions.

One that comes to mind is a landlord tenant arrangement. You can rent a place for more than a year without a written agreement and your rights and obligations are covered by the landlord tenant statute.

Do you have a specific type of oral agreement in mind?
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Old 08-11-2018, 01:21 PM   #3
Hsr 44
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Default Re: Oral contract governing three year period?

I orally agreed to pay 230 dollars a month for three years and then the seller would sign the car title over to me.

It has been 18 months now and I don't want the vehicle anymore and I don't want to keep paying. Title is still in his name.
Thanks!!
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Old 08-11-2018, 04:40 PM   #4
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Default Re: Oral contract governing three year period?

Read b.3 and b.4 at the link I provided and then think about the nature of any communications you had with the seller, like emails or texts.

Also read b.3(b). Would you lie under oath in court and say you didn't have an agreement to pay $230 per month for three years?

Notwithstanding the Statute of Frauds, there may be other exceptions addressed in case law. One of which comes to mind is performance. The agreement was you get the car, you make the payments. Both of you have performed under that agreement for 18 months.

My relatively educated guess is that the agreement could be enforced in court based on performance.

The question: Will the guy sue you if you just returned the car and stopped paying him? If he doesn't, you're home free. If he does, you risk losing.

A better idea is to put the car up for sale for enough cash to cover the balance owed, then pay the guy the balance, get the title and give the title to the new owner.

Is the car worth the $4140 or so that's left to pay?
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Old 08-11-2018, 06:26 PM   #5
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Default Re: Oral contract governing three year period?

Another car financing nightmare caused by not getting a bank loan.

The stupidity of people amazes me.
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Old 08-12-2018, 01:26 AM   #6
goddessoflubboc
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Default

Quote:
Originally Posted by adjusterjack View Post
Read b.3 and b.4 at the link I provided and then think about the nature of any communications you had with the seller, like emails or texts.

Also read b.3(b). Would you lie under oath in court and say you didn't have an agreement to pay $230 per month for three years?

Notwithstanding the Statute of Frauds, there may be other exceptions addressed in case law. One of which comes to mind is performance. The agreement was you get the car, you make the payments. Both of you have performed under that agreement for 18 months.

My relatively educated guess is that the agreement could be enforced in court based on performance.

The question: Will the guy sue you if you just returned the car and stopped paying him? If he doesn't, you're home free. If he does, you risk losing.

A better idea is to put the car up for sale for enough cash to cover the balance owed, then pay the guy the balance, get the title and give the title to the new owner.

Is the car worth the $4140 or so that's left to pay?
OP doesn’t have title. Therefore he doesn’t have the standing to sell the vehicle.
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Old 08-12-2018, 02:10 AM   #7
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Default Re: Oral contract governing three year period?

Quote:
Originally Posted by goddessoflubboc View Post
OP doesn’t have title. Therefore he doesn’t have the standing to sell the vehicle.
Sure he does. He can get a buyer to buy it for the balance and all three can get together for the transaction. New buyer hands over the cash to original seller, OP hands over the car, original seller hands title to new buyer.

What did you think I meant?
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Old 08-15-2018, 09:27 AM   #8
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Default Re: Oral contract governing three year period?

Quote:
Originally Posted by adjusterjack View Post
Sure he does. He can get a buyer to buy it for the balance and all three can get together for the transaction. New buyer hands over the cash to original seller, OP hands over the car, original seller hands title to new buyer.

What did you think I meant?

...well if they can all agree that yes...
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Old 08-15-2018, 01:28 PM   #9
adjusterjack
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Default Re: Oral contract governing three year period?

Quote:
Originally Posted by Nan5 View Post
...well if they can all agree that yes...
Well, yeah, duh.
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Old 08-15-2018, 02:13 PM   #10
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Default Re: Oral contract governing three year period?

That could be a big IF...

Goddess makes a decent point.
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