Validity of Pricing discussed on phone for accounting?

[fiacre68]

We did not sign any contract or engagement letter or not even an email, but discussed pricing and everything on phone for accounting services. Now the accountant is not honoring that price asking for different price and threatening to take to Collections or small claims court if not paid. What options do I have?

[urian27]

O9,

An oral contract for services may be enforceable. Meaning, it may not need to be in writing, but issues like this remind us that documented contracts make the most sense.

If the other party previously agreed orally to a price, you may be able to sue him for damages (but not for performance for personal services).

If he already performed the agreed service, he likely cannot request additional compensation without "consideration," meaning additional services he provided. However, it's a murky area and the contract law in your state of residence or business will govern the specific circumstances. You should seek the advice of a lawyer. Best of luck to you.


-db.