Unethical Business Practices FAQs

What is an oral agreement?
When parties have orally agreed to a set of terms, an oral agreement has been made. The laws that govern oral agreements may differ from state to state, but most have laws that enforce oral agreements as binding. What is necessary is that a “meeting of the minds” must have taken place. That is, major points have been discussed and mutually agreed upon, although all the specifics have yet to be put in writing.

How do I prove an agreement was reached?
Oral agreements can be difficult to prove. The other party may simply say that no agreement was ever reached. The case may be decided on what evidence there is to prove that an agreement was in fact reached. This could be in the form of notes taken during the meeting. In fact, any scribbles or doodles may help prove your case.

What is a breach of contract?
Failure to perform any term of a written or oral agreement, with no legal reason, could be considered a breach of contract. You could receive compensation if the breach resulted in a loss of profits or damaged property.

What constitutes fraud?
If someone attempts to deceive you in order to get money from you or to obtain an advantage of some kind, that’s fraud. In the case of a fraud, the injured party may cancel the contract and sue the wrongdoer for damages. Frequently, a case will contain both fraud and misrepresentation.

What’s the meaning of misrepresentation?
Misrepresentation is a false or misleading statement made about a present or past agreement. While fraud is intentional deceit, a misrepresentation is interpreted as an innocent misstatement of a fact. In the case of a misrepresentation, the injured party may be able to cancel the contract.

My insurance agent told me I’m covered, but the policy says I’m not. What do I do?
What an insurance agent says is also a contract whether it is written in the contract or not. Even if it is just the agent’s interpretation. There could also be punitive damages involved in any lawsuit against an insurance company.

Do I have any recourse if a government entity doesn’t honor a contract?
Yes. The Supreme Court has ruled in several cases that when the government acts in its contractual marketplace capacity, versus its sovereign regulatory capacity, the rules that control the government and those acting on its behalf are the same rules that govern any two commercial contracting entities. Therefore the government has the same responsibility to honor an agreement just as any private company would.