While it is true that the general rule is a contract based upon a fraudulent representation is not valid or enforceable, the more urgent question may be what are you going to do about it.
In other words, the contract may be enforceable until you both decide the contract will not be enforced or until a court makes a similar determination.
If the other side will not agree with you, then often it is better for you to be plaintiff in such a law suit, because it gives you the last say with the court.
I hope this helps. Good luck.
I am licensed to practice in Nevada. Please note - the information I post is not legal advice and my response does not make me your attorney. If you would like to seek my legal advice, then please contact me directly. I participate in AVVO in an effort to assist people by providing general answers to questions. However, you should always consult an attorney (meaning talk with one face to face in a consultation) before taking any legal action.
Any contract, oral or written, can be set aside and become invalid by a party if the other party commits fraud by making a material representation of fact to the first party. The problem, particularly in an oral contract, is establishing that the representation was made and that it was false.
DISCLAIMERâ€”This answer is for informational purposes only under the AVVO system, its terms and conditions. It is not intended as specific legal advice regarding your question. The answer could be different if all the facts were known. This answer does not establish an attorney client relationship. I am admitted only in California. (Bryant) Keith Martin sbbizlaw.com
I agree with my colleagues. A verbal contract is valid if the elements of a contract are present, but fraud could invalidate it.
Fraud is a voidable defense, but it is also waivable if you do not raise it timely. Your verbal agreement may be subjected to the statute of frauds, but if it is not, then it will be enforceable. The longer you "sleep on your rights" to raise the "fraud in the inducement" affirmative defense, the more likely the opposing party will raise the waiver issue.
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