Consumer Law, Warranties can employer be sued for breach of verbal contract

[foresthills]

An employer is closing his business but offered to sell the business to his employees and promised to give them certain assets. The employees agreed to buy and took out home equity loans and applied for liability insurance in anticipation of the sale. Employer, without any notice, sold the business to a third party. The employees are left without a means of support. Can they sue for verbal breach of contract? Thank you.

 

[NYClex]

It would depend on the exact circumstances, but generally yes, most oral contracts can be enforced. Here, however, one would have to find out if the contract would be within the Statute of Frauds (meaning if it would have had to be in writing), and if the employee might be able to assert promissory estoppel to overcome that defect. You might want to consult an attorney with this problem.