Posted by Brad Crouch on November 02, 1998 at 14:16:43:
A receipt may indicate “ratification” of an oral agreement, but it does not show a “meeting of the minds”, which is required for any real estate contract to be valid… In other words, you got “nuthin” … (my opinion).
If the guy has changed his mind on the price or terms BEFORE he committed his signature to a contract, you’re not going to be able to “force” him to adhere to the original oral agreement . . . the one that YOU liked.
It’s great to have the luxury of being able to “stick to your principals”. I guess you’re already wealthy and can afford to take “time off” to persue making this guy change his mind back to your original oral agreement. How many other deals will this folly cost you?
Although since you didn’t have contracts handy when you really needed them, and are now facing the aftermath of that . . . you may have learned something that will make you a more effective RE investor in the future.
Count your blessings that you learned a “good” lesson (cheaply too!), and keep on truckin’! The thing to do now is develop or modify various contracts and print them out. Then start carrying them with you wherever you go. So this senario will NEVER happen again.
If you can’t make a profit with the new numbers and terms, and you can’t negotiate things so you CAN make a profit . . . MOVE ON to the next deal.