What can I do about a breach of a verbal agreement?
Question Details: I manage one area of a company that has been very profitable. The managers of the other areas in the company lost a lot of money. The owner legally split the company into 2 companies. The one I manage is the new one that is under a different name. I bought into the company that I manage with only a verbal agreement. The owner immediatley took my investment and used it to pay on the other company's debt. It was agreed that money was to be used to make the one I manage a stand-alone company. Then the owner started selling off the assets of the new company to "save" the other one and never gave me distribution. Is there anything I can do?
Speak with an attorney. As a general rule, an oral or verbal agreement is legally enforceable, just as a written contract would be--though, of course, it can be much more difficult to prove the existence and terms of an oral agreement, if the other party to the contract disputes your version. There are some contracts or agreements, however which must be in writing to be enforceable: those involving real estate, or agreements to answer for the debts of another, or sometimes those for large sums of money or which cannot be completed within one year. Speak with a lawyer, who can analyze the situation and determine if you have an enforceable agreement; if you do, then you may be able to sue to enforce its terms.