Oregon Complaint for Refusal to Pay Debt - Breach of Oral or Implied Contracts

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US-01644BG
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Description

This form is a generic complaint and adopts the "notice pleadings" format of the Federal Rules of Civil Procedure, which have been adopted by most states in one form or another. This form is for illustrative purposes only. Local laws should be consulted to determine any specific requirements for such a form in a particular jurisdiction.

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FAQ

(3) Even if the third person makes the promise to the creditor and promises only to be responsible for the debt if the debtor defaults, an oral promise will be enforceable if the third person's main purpose for making the promise is for his own benefit. This is called the ?Main Purpose? rule.

While an oral contract can be enforceable a court will only enforce such a promise if the details surrounding the obligations of both parties are clear and unambiguous.

A party's oral agreement to pay another's debt is enforceable if the party's main purpose is to derive a benefit for himself or herself. The Statue of Frauds requires that certain types of contracts must be in writing, or evidenced by a writing, to be enforceable.

Statute of Frauds If the contract is an oral agreement, it has to satisfy the statute of frauds. That means that if the contract is for the sale of land or cannot, by its terms, be performed in less than a year, the contract needs to be in writing (ORS 41.580).

A verbal agreement is legally valid provided that the basic foundations of a binding contract are in place. However, there are cases where a physical written contract is necessary for the agreement to be legally-binding, irrespective of whether or not an oral agreement contains all of the elements of a contract.

If a person does not fulfill their part of the verbal contract, there may be grounds to sue?but it will depend on the overall nature of the agreement and stipulations involved. If you believe another party violated your valid verbal contract, do not hesitate to get legal help you can trust.

Put simply: yes. From a legal standpoint, verbal contracts can often be as valid as written contracts. They may be extremely difficult to regulate but you should find comfort in knowing that there are applicable state and federal laws that can help enforce such contracts and protect your legal rights.

A primary obligation is a promise to pay another's debt only if that party fails to pay.

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Oregon Complaint for Refusal to Pay Debt - Breach of Oral or Implied Contracts