QUESTION
can a small business be sued by another business for money owed if there was no written contract?
Asked on Feb 03rd, 2012 on Business Law - Florida
More details to this question:
We received merchandise from a company in numerous transactions over two years, in the process we found out that we were falsely being over charged for shipping and other charges. We refused to pay the last invoices totaling about $2400.00 until they credit the over charges. They have now filled a small claims suit against us. We tried to compromise by sending a letter saying we''ll pay the balance if they lift the suit, but now their answer is they want also $240.00 is court fees. On principal I''m refusing to pay. We never had a written agreement, or contract, and they only evidence they submitted to the county clerk was the two outstanding invoices which are not signed for nor were any ever signed. Does the "Statute of Frauds" apply as a defense?And can we have the case dismissed even before appearing because they don''t have a legit contract.
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There is a statute of frauds for the sale of goods, but it is very easily circumvented. If you have received and retained the merchandize without objection, or if you and the seller are deemed to be "merchants" (which sounds like the case, or if you have retained the invoices without objection, you cannot generally raise the statute of frauds. The seller can generally prove that you received the goods. As you can imagine, most small arrangements for the sale of goods are not reduced to formal written contracts. You should think up a better defense than the statute of frauds. Perhaps see if you can compromise on the $240 -- split the difference or something else. Nobody can afford to litigate over a $240 dispute.
Answered on Feb 03rd, 2012 at 2:07 PM