Expert: Timmy Chou - 8/12/2010

Question
so this is going to sound dumb but i live at home going to college and slowly in the last 4 years have baught cows from my parents. i think they may be getting a divorce, heres the dumb part, i dont want to loose my six "babies" (cows) they are HUGE pets that i love dearly. i have raised them since they were babies. i have a homemade contract that i made them sign (sad i know) all the times i have ever baught a cow from them. my problem is my mom says shes going to sell them out from under me so i guess my question is, can a homade contract agreement be binding if i had to go to court over this???? i live in MO.

Answer
Thank you for your question!

As I always advise questioners, mediators act as neutral third parties to disputes and never "get involved" in judging the merits of conflict, but merely use special techniques to help the parties decide how to negotiate their own settlement.

I am not an attorney and cannot give you legal advice but can respond from my management and consulting experience.  Note that this issue may certainly have legal ramifications and you may wish to consult an attorney.

Oral contracts carry the force of law, just like written ones, and home made contracts are also binding as well.  Assemble your documents and also try to keep a record of payment or other consideration you gave when you "bought" the cows.  

If there is a substantial underlying dispute going on, you may wish to get a mediator's help.  Family disputes tend to lend themselves well to mediated settlements.

These are some ideas.  Feel free to follow up with additional questions.

For your general information, the pros and cons of the types of dispute resolution methods follows.

GOOD LUCK!

Arbitration, Mediation, and Litigation

Arbitration: the referral of a dispute to one or more impartial persons for final and binding determination outside of the judicial system

Benefits of Arbitration:

Confidential, no public record
Limited exchange of documentation, information
Quick, don't have to wait for a court date
Arbitrators have expertise in the subject matter and are trained in conflict resolution
Cheaper than litigation
Preserves business relationships

Negatives of Arbitration

It's often a compromise, no 100% winner
Complex arbitration can be costly
If not satisfied, may litigate the arbitration procedure
Poor results with an unskilled arbitrator
Both parties must agree to cooperate in the process

Mediation: the process by which parties submit their dispute to a neutral third party (the mediator) who works with the parties to reach a settlement of their dispute.

Benefits of Mediation:

Neutral mediator can objectively suggest alternatives not considered before
Parties are directly engaged in negotiating the settlement
Can be quicker than litigation
Less costly than litigation
Preserves business relationships
85% of American Arbitration Association cases mediated find successful solutions

Negatives of Mediation

may not reach a binding decision
unskilled mediator

Litigation: using the judicial system to resolve disputes

Benefits of litigation:

a clear winner and loser
uses a prescribed set of procedures
more predictable outcomes
is final

Negatives of Litigation:

waiting for court dates can do more harm
usually more expensive than mediation and arbitration
part of the public record