AN ORAL AGREEMENT TO FOREGO BANKRUPTCY IN EXCHANGE FOR NEW REPAYMENT TERMS MAY REPLACE THE ORIGINAL LOAN AGREEMENT
Fanucchi & Limi Farms v. United Agri Products
(United States Court of Appeals for the Ninth Circuit, July 14, 2005)
A secured creditor under a written contract may find itself bound by a subsequent oral agreement if the difference between the two agreements was "drastic," and the conduct of the parties' actions indicate that they considered the oral agreement to have extinguished and replaced the old one.
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