The Risks of Relying on Oral Contracts in Florida

A contract reflects an agreement between individuals (or legal entities) where one party provides goods or performs a service in exchange for consideration, such as money or other goods or services. In general, it is a good idea for business contracts to be in writing. Oral contracts are legal in Florida and can be enforced, but proving the existence of such an agreement can be tricky, especially when the parties dispute what was actually said or promised.

Miami Judge Dismisses Lawsuit Over Alleged Agent Agreement

A recent decision from a federal judge in Miami, Guerrero v. Magnus Sports, LLC, provides a good example of this problem. This case centers on Vladimir Guerrero Jr., the well-known first baseman for the Major League Baseball’s Toronto Blue Jays. The plaintiff in this case is a longtime family friend of Guerrero. According to the plaintiff’s lawsuit, in 2016 Guerrero retained him “as a consultant to assist” him in possibly switching agencies to represent him in negotiating endorsement deals.

The plaintiff subsequently spoke to two agents who ran an agency in Florida. The plaintiff alleged these agents promised that if Guerrero hired them, the agents in turn would hire the plaintiff to effectively serve as Guerrero’s “personal assistant” and act as their intermediary. The plaintiff said he accepted this agreement in a telephone call, which he believed created a binding oral employment contract.

Over the next four years, the plaintiff said he received a variety of payments from the agency. But things took a turn in 2019 when Guerrero made his first Major League roster. This event triggered the agency’s receipt of 5 percent of Guerrero’s salary as a commission. The plaintiff, in turn, alleged that his oral agreement required the agency to pay him a portion of that commission. But the agency instead only offered to pay a bonus “in an equitable amount to be determined,” which the plaintiff took as a repudiation and breach of their contract, thus prompting him to sue the agency and the two agents for breach of contract.

To make a long story short, a federal judge dismissed the lawsuit. The judge determined that the plaintiff “failed to allege the existence of a valid, enforceable contract.” Notably, there were “inconsistencies” in his description of the alleged oral contract. This was fatal to his case, as just like a written contract, an oral contract requires proof of a “meeting of the minds on all essential terms and obligations.” But here, there were “conflicting characterizations of the fundamental nature of the contract and the services that Plaintiff would have to render to be entitled to compensation.”

And even if the plaintiff could prove the existence of an oral contract, the judge continued, he still could not enforce it under Florida’s Statute of Frauds, which requires a written agreement where “full performance is impossible within a year.” Here, the condition triggering full performance–Guerrero making a Major League roster–did not occur until roughly two years after the plaintiff allegedly made his oral agreement with the agency.

Contact a Bradenton Business Litigation Lawyer

As the case above illustrates, relying on oral agreements can pose significant risks for businesses. If you are involved in a dispute over any kind of contract, our Bradenton business litigation attorneys can help. Contact Suncoast Civil Law today at 941-366-1800 to schedule a confidential case evaluation.

Source:

scholar.google.com/scholar_case?case=10023314339484818106