Friday, June 3, 2005

Can a Company Sue You Without the Original Contract?

When companies or people have a disagreement, it is best if they try to work out the details and reach an agreement on their own. Sometimes, this cannot happen; a lawsuit is the only way to settle the matter by asking a court to determine who is right. An original copy of a contract helps with this process but even if the plaintiff doesn't have one, it can still sue without the contract.

Collections Lawsuits

    Collections lawsuits are one of the most common types filed in small claims courts. Typically, a debtor has little defense in this type of lawsuit; if he owes the money, he has very little reason to argue that point, and the debtor might be better off trying to negotiate a settlement. The situation changes considerably when the creditor cannot produce a copy of the original contract. This can make it more difficult for the creditor to prove that the debt exists. Even with this difficulty, a creditor can still bring a lawsuit, hoping that the debtor will not attempt to defend the suit.

Contractual Lawsuits

    Contractual lawsuits are more contested than collections lawsuits by their nature. With a contractual dispute, one party to a contract is claiming that the other party is not living up to its agreement. Generally, the other party is claiming that it is justified in not performing the terms of the contract. Without a copy of the original contract in this case, it is difficult for the parties to prove who is not following the agreement. One of the parties may still sue the other but runs the risk of the judge quickly dismissing the suit quickly due to a lack of evidence.

The Statute of Frauds

    The statute of frauds states that certain types of agreements must be in writing to be enforceable. Contracts that cannot be completed within one year and contracts for the sale of land are examples of this, as well as contracts where one party assumes the debt of or guarantees a loan for another person. If the party disputing the contract cannot produce a written copy of the contract, the judge in a court case is likely to dismiss the lawsuit before a trial is held. Any contract that must be written will be considered void because of the lack of a written copy

Preparing for Court

    When the plaintiff cannot produce a written contract, the advantage in the legal process definitely belongs to the defendant. Still, a plaintiff can make a case that there was an agreement unless the case is covered by the statute of frauds. The plaintiff should present any signed delivery receipts to prove that product was delivered to the defendant. The plaintiff can also present any copies of statements showing that the defendant paid money towards his bill. People usually do not pay on a bill that they do not legitimately owe.

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