Friday, February 17, 2006

contracts - oral settlement agreement - enforceability

Krebs v. United Refining Co. - Superior Court - February 16, 2006

An oral settlement agreement can be enforceable, even where the parties cannot agree about reducing it to writing. However, the claim to enforce was denied in this case, because there was no agreement as to essential terms. The nature and extent of mutual obligations were not certain, and there was no agreement about material and necessary details of the parties' alleged bargain. A trial court cannot fill in missing terms and enforce an agreement of its own devising.

Donald Marritz
MidPenn Legal Services