Legal Question in Consumer Law in New Jersey

Re: Binding Oral Contracts re: retail utilities

I have read Mr. Rothenberg's answer to you and I agree with his analysis of the law and its effect on you. I add only that a complete look at the facts would require a review of any contract that might have been in place between you and the supplier at the time of the new offer. It is possible that last year's contract has a renewal provision that might complicate matters.

We are practically neighbors. If I can be of assistance, feel free to call or email.

Re: Binding Oral Contracts re: retail utilities

Generally a contract over $500 has to be in writing. It is unlikely that they can enforce the "oral agreement"

There is a Statute called the Statute of Frauds which states:

N.J.S.A. 12A:2-201

Title 12A. Commercial Transactions (Refs & Annos)

Subtitle 1. Uniform Commercial Code

Chapter 2. Sales

Subchapter 2. Form, Formation and Readjustment of Contract

12A:2-201. Formal requirements; statute of frauds

(1) Except as otherwise provided in this section a contract for the sale of goods for the price of $500 or more is not enforceable by way of action or defense unless there is some writing sufficient to indicate that a contract for sale has been made between the parties and signed by the party against whom enforcement is sought or by his authorized agent or broker. A writing is not insufficient because it omits or incorrectly states a term agreed upon but the contract is not enforceable under this paragraph beyond the quantity of goods shown in such writing.

As such I do not think the "contract" is enforceable. Attempts to avoid this or force you to agree to their demands may also give rise to a consumer fraud case.

Hope this is of some help.