What is the name of your state (only U.S. law)? Texas
I own a very small company and was asked by a company to submit a proposal on a rather large job. We submitted the proposal and received a purchase order along with a large packet of additional required information such as insurance certs, safety requirements and so on, most of which had to be signed and returned which we did. We were notified of a start date for the job at which time I pointed out that our proposal required 50% down to start the job. At first they refused, even though it was part of the original proposal, then agreed to provide the down money. We began preparing for the job by ordering supplies and hiring additional labor. Two days prior to the start, they suddenly refused to pay the down money, which they had agreed upon and cancelled the purchase order. We had already turned away other work in order to fullfill this job and were now stuck with materials. We had no contract per say other than the fact they accepted our proposal and issued a purchase order. Is the issuance of the purchase considered a contract. Do they have the right to cancel a purchase order because they failed to read the proposal. Is there any recourse against this company?
I own a very small company and was asked by a company to submit a proposal on a rather large job. We submitted the proposal and received a purchase order along with a large packet of additional required information such as insurance certs, safety requirements and so on, most of which had to be signed and returned which we did. We were notified of a start date for the job at which time I pointed out that our proposal required 50% down to start the job. At first they refused, even though it was part of the original proposal, then agreed to provide the down money. We began preparing for the job by ordering supplies and hiring additional labor. Two days prior to the start, they suddenly refused to pay the down money, which they had agreed upon and cancelled the purchase order. We had already turned away other work in order to fullfill this job and were now stuck with materials. We had no contract per say other than the fact they accepted our proposal and issued a purchase order. Is the issuance of the purchase considered a contract. Do they have the right to cancel a purchase order because they failed to read the proposal. Is there any recourse against this company?