Legal Question in Business Law in California

Unestablished Contract Agreement

I signed up for personal training with a company, who has since then charged my credit card three times for the service. I never signed a contract with them, and they claim I signed an online contract but are unable to come up with it. They also claim i agreed verbally over the phone. Since I never signed a formal agreement, does that mean they are technically ''stealing'' money from me?


Asked on 2/21/06, 9:42 pm

3 Answers from Attorneys

Terry A. Nelson Nelson & Lawless

Re: Unestablished Contract Agreement

Your contract defines your rights and payment obligations. Your easy solution is to dispute and reverse the improper credit card charges through the card company.

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Answered on 2/22/06, 6:15 pm
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: Unestablished Contract Agreement

What do you mean "I signed up for....?" That sounds a lot like making a contract. A proper evaluation of your situation would require an answer to that. Also, how did they get your credit card number? If you gave it to them, it's very possible that was done under circumstances that could look a lot like "making a contract" to a judge or jury.

In the 21st Century, contract formalities are giving way to a new reality of how business has to be done to survive in a fast-paced world. FAXed documents can be filed in court. Electronic signatures can be used on million-dollar transactions. In some industries, silence can be taken as assent to a contract.

There is, of course, still an expectation of a meeting of the minds in order to form a contract, but very, very few contracts are formed by the parties sitting around a table and affixing their signatures to neat parchment documents full of whereases and now, therefores.

If this continues, I would take it up with your credit card company as an instance of unauthorized charges; ask them to back-charge the items and block future charges from this company. If this doesn't work, consider a small claims suit for money damages.

Finally, if it's really theft, which I doubt, you might want to contact your local DA and see if someone in their fraud or white-collar crimes unit would be willing to give you an interview.

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Answered on 2/21/06, 10:21 pm
Charles Williamson Charles J. Williamson, Attorney At Law

Re: Unestablished Contract Agreement

Yes.

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Answered on 2/21/06, 10:23 pm


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