It is always advisable to have your business contracts in writing and signed by all parties (‘as we discussed in this prior blog post Tip #1 To Help Your Company Avoid, Or Reduce The Cost Of, Business Disputes: Always Use Written Agreements‘). Even if you are comfortable with informal oral agreements, under New Jersey law, there are certain contracts that need to be in writing. For example, under a statute called the Statute of Frauds, the following types of contracts will not be enforceable unless they are in writing:
- A contract, promise, undertaking or commitment to loan money or to grant, extend or renew credit, in an amount greater than $100,000, not primarily for personal, family or household purposes, made by a person engaged in the business of lending or arranging for the lending of money or extending credit;
- An agreement by a creditor to forbear from exercising remedies pursuant to a contract, promise, undertaking or commitment in cases where the contract amount is greater than $100,000;
- A contract for the sale of land or real estate;
- A real estate commission agreement; and
- A lease for real estate which is for a period of time that exceeds three years.
There are numerous cases in New Jersey where the Courts have refused to enforce oral agreements that fall into the above categories. Spector & Ehrenworth, P.C. has extensive experience assisting clients in drafting and reviewing contracts that our clients use in the ordinary course of their business. Attorneys at the firm would be happy to discuss with you the specifics of your business and to help with the preparation and review of your business contracts. To schedule an appointment to speak with a business attorney, call (973) 845-6525 or e-mail firstname.lastname@example.org.
The content of this blog is intended for informational purposes only. It is not intended to solicit business or to provide legal advice. Laws differ by jurisdiction, and the information on this blog may not apply to every reader. You should not take, or refrain from taking, any legal action based upon the information contained on this blog without first seeking professional counsel. Your use of the blog does not create an attorney-client relationship between you and Spector & Ehrenworth, P.C.