Boyd Law: Your Word Is Your Bond

Boyd LawIf you have ever hastily agreed to something without hashing out the finer details, you have entered into a legal agreement. Usually, these quick “I’ll do this if you do that” bargains go off without a hitch. However, complications sometimes arise. According to Brentwood business lawyer Brian T. Boyd, oral contracts often go south when one party changes their mind or when there are too many nuances to keep track of.

Recently, Boyd sat down with us to talk about the validity of oral contracts and whether or not they carried any weight in a court of law.

Q: What is an oral contract?

Brian T. Boyd: An oral contract is essentially a verbal agreement between two consenting parties. For example, when you make a trade with someone. Usually, there is no paperwork but you discuss swapping this for that. The swap happens, and everyone goes on with their day. You have completed the transaction and that’s the end of it.

Q: Can an oral contract be used to secure a larger agreement, such as leasing an apartment or selling a vehicle?

Brian T. Boyd: Yes and no. In the case of leasing property, as long as you own the property, you are within your rights to determine how you want to pursue a lease agreement. When you sell a vehicle, you must sign over the title, which serves as a legal document. Unfortunately, although you can attempt to sort out the details face-to-face, things can get sloppy in either one of these examples very quickly. We always suggest to residents and business owners in Brentwood that a business lawyer can draw up a contract that there is no question of intent.

Q: What happens when one party backs out of a verbal agreement?

Brian T. Boyd: That all depends on whether or not the oral contract can be proven. If there are witnesses, you likely have a legal standing should you pursue legal action. A Brentwood business lawyer can provide counsel based on specific circumstances. 

Q: So, an oral agreement can not be enforced if there are no witnesses?

Brian T. Boyd: Not necessarily. Once you enter into an agreement, there are ways to prove the original intent. This starts by documenting your actions and those of the other party. Something as simple as sending an email or text message thanking them and letting them know that you have begun fulfilling the agreement can serve as proof.

Q: It has been said that Steve Jobs and Bill Gates entered into business deals with no more than a handshake. What are your thoughts on complicated business matters? Is a handshake enough?

Brian T. Boyd: Absolutely not. As a business lawyer in Brentwood, I have seen time and again these types of deals end in disaster for both parties. Jobs and Gates (and many other public figures) may have initiated agreements based on mutual respect and friendship, but you can guarantee their legal teams worked tirelessly in the background to ensure there were no misunderstandings.

Q: Do you need a business lawyer to draft an agreement?

Brian T. Boyd: Not necessarily, especially if it is a deal between friends or family members. However, it is highly advisable to do so in the case of employment contracts, real estate transactions, and other deals that have long-term implications, involve large sums of money or have stipulations that may not be clear.

For more information on oral contracts and other topics related to business law, business litigation, commercial law, and tax law, please reach out to The Office of Brian T. Boyd, PLLC at www.boydlegal.co. They are conveniently located in Brentwood, TN for all your legal needs.

Douglas Andrew Discusses the TAMRA Law

Douglas Andrew

Douglas Andrew

Douglas Andrew has established a successful series of Missed Fortune workshops and books. The Missed Fortune principles are founded upon maximum funded tax-advantaged life insurance, but Douglas Andrew stresses these must be structured correctly. Much of this structure comes from obeying tax laws, Douglas Andrew says—primarily three major tax laws enacted in the 1980s regarding the insurance industry.

Douglas Andrew regularly fields questions about these laws. Today, he addresses questions about TAMRA—the Technical and Miscellaneous Revenue Act of 1988.

Q: Why was the TAMRA Law passed?

Douglas Andrew: In the 1980s, people were putting large sums of money into life insurance policies because they knew life insurance companies were stable. Feeling the competition, banks and institutions lobbied Congress and the result was the TAMRA Law of 1988.

Q: What is the TAMRA Law?

Douglas Andrew: In essence, with the TAMRA Law, an individual cannot put his or her money in an insurance policy all at once and maintain a tax-free environment.

Q: So someone has to slowly put money in?

Douglas Andrew: It must be deposited gradually over several years in order to comply with TAMRA.

Q: Do we have to comply with TAMRA?

Douglas Andrew: Yes, if we want our money to be tax-free when it’s taken out, it’s important to comply with all of the stipulations of TAMRA.

Q: What if someone has a policy that dates prior to TAMRA?

Douglas Andrew: If someone has a policy that was taken out prior to TEFRA, DEFRA, and TAMRA, then they don’t apply. These policies were grandfathered in because they were established prior to these laws.

Q: Why should I choose a maximum insurance tax-advantaged life insurance policy over stocks and bonds?

Douglas Andrew: Insurance companies have been around since the 1800s, weathering all the ups and downs in the market. In the economic turmoil of recent years, not a single life insurance company has gone out of business.

Q: How many banks have gone out of business?

Douglas Andrew: At last estimate, more than three hundred with the recent recession.

Q: What about fees?

Douglas Andrew: The goal is to incur the least amount of fees possible, but as I tell our Missed Fortune clients, I’d rather be paying fees to an insurance company than fork over large sums of my earnings to pay taxes.

Q: How much can a person expect to pay in fees for maximum funded life insurance?

Douglas Andrew: Using the methods outlined in Missed Fortune, someone netting eight percent would pay about one percent in fees over the life of the policy. That’s seven percent with no taxes required.

For  more information on Missed Fortune and Douglas Andrew’s advice on choosing maximum funded tax-advantaged life insurance contracts, visit http://www.missedfortune.com. Douglas Andrew has had two national bestsellers and his Missed Fortune seminars are in demand throughout the country.