Martin made an oral contract with Cresheim Garage to work as its manager for two

Question

Martin made an oral contract with Cresheim Garage to work as its manager for two years. Cresheim wrote Martin a letter stating that the oral contract had been made and setting forth all of its terms. Cresheim later refused to recognize the contract. Martin sued Cresheim for breach of the contract and offered Cresheim's letter in evidence as proof of the contract. Cresheim claimed that the oral contract was not binding because the contract was not in writing and the letter referring to the contact was not a contract but only a letter. Was the contract binding?

Explanation / Answer

The contract may be oral or written. Also the letter is referring to the oral contract which is a sufficient document to make tjhe parties binding as per the contract law.

Thus the contract is binding.

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