QUESTION
Do Verbal Agreements hold up in court.
Asked on Jun 04th, 2012 on Business Litigation - New Jersey
More details to this question:
I started a Ecommerce business with a investor 2 years ago. The investor opened a new LLC under his name. As per our verbal agreement I was suppose to do all the work and he was just a investor. After reaching 2 million in sales I was suppose to get 50% Stake in the company. I did all the work for two years and now when the company is doing well and we have reached sales of 3 million he is backing out of his commitment. He is refusing to accept any such agreement. I want to know is there a way I can fight legally and get my share of the company. There is no written proof of as such and no one else knows about our arrangement. He paid me very less salary during this period. I worked for 100 hours a week and got paid for 30 hours a week. He assured me that he will pay me through equity and now he is refusing to do so.
1 ANSWER
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Oral contracts are generally enforceable, as long as they can be proven. Sometimes the proof can be simply your word against his, or other times the contract can be proven through the conduct of the parties, or even by their partial performance of the contract. You need to consult with an attorney who practices civil litigation to assist you in analyzing this claim, the evidence to support it, and the likelihood of success.
Answered on Jun 04th, 2012 at 3:42 PM