Friday, October 7, 2011

Oral Contract Between Parties

In an unpublished case, the Colorado Court of Appeals affirmed the trial court’s holding for unjust enrichment and that an oral contract existed between the parties. The parties were engaged in an intimate relationship and participated in a commitment ceremony. At issue in the case was whether the parties had a valid oral contract to split rent and expenses incurred during the relationship. In an evaluation of credibility, the trial court found both unjust enrichment and the existence of an oral contract. The Appeals Court declined to evaluate the credibility of the witnesses and rather upheld the trial court’s decision based on a "clearly erroneous" standard of review. The take away from the case is the importance of reducing all agreements to writing! For more information, go to Dufour v. Jordan.