Business Law

Dr. Vranich and Dr. Winkel entered into an express contract. An express contract is a written or oral contract. An express contract is a contract in which all elements of a contract are specifically stated (offer, acceptance, consideration), and the terms are stated, as compared to an implied contract in which the existence of the contract is assumed by the circumstances. In the beginning Dr. Vranich and Dr. Winkel entered into a written contract. At a later date, they entered into an oral modification of their written contract. A written contract can be altered by another written contract or a verbal contract as long as it has been executed. Both parties have to agree. The question in this case is if both parties agreed to this oral contract.

An oral contract is a contract that is not in a written form, but is entirely valid and enforceable. Unlike in case of a written contract, however, it might be difficult to prove the existence and the terms of an oral contract except by testimony. In general (unless specified in writing), an oral contract may alter, annul, dissolve, or waive the terms of a written contract, and vice versa. As mentioned earlier, the oral agreement was executed. I believe the law is on Dr. Winkel's side. Dr. Winkel did receive an increase in his salary, which it was part of the oral contract. So should Dr. Winkel get his profit sharing? Yes, Dr. Winkel should definitely get his profit sharing bonus. Is it ethical for Dr. Vranich to argue the fact of the contract not being written? No it's not ethical. I believe that it was unethical of Dr. Vranich to argue the fact that the contract wasn't written. The Montana laws allows the oral contracts and by giving Dr. Winkel a higher salary he proved that oral or not it contract was executed.