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Am I obligated?

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instauratio

Junior Member
Michigan

Names are changed to protect the innocent

I recently started in business doing computer network installs and support. My friend Bob told me his boss (Bill) is looking for a new nework. Bill asked me for more information about what I could offer. I sent Bill this:

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I regret that I find myself sending you a price so soon after having only briefly met you. I understand from Bob though, that you are very busy man and I respect this. After studying the drawing Bob sent, I’m convinced this job will take approximately 100 hours. I believe that Bob and I can work in this time frame with precision and quality in mind. Because I am friends with Rob and enjoy working with him, because I’m still building my business (one year now), and because I see this as an ideal network install with few complications; I offer my services for $4000.00 dollars flat fee. For this price, I am prepared to install, with Bobs assistance the complete Data structured cabling, Phone structured cabling, Video, Alarm, and Access Controls cabling.
This price is for my skills and services only; it does not include any parts or supplies. All the parts, pieces, and supplies for this network will need to be purchased directly by Eagle Manufacturing. Also, I have a complete set of tools for my work, but since Bob will be working along with me, Eagle Manufacturing may need to purchase some lesser tools so that Bob and I can work simultaneously.
I was flattered when Bob contacted me and I am looking forward to a great experience. I’m excited about doing work where I know it will be appreciated for its worth. You may be familiar with the experience of doing an enormous, or difficult job with high quality and delivering to a customer who has no idea, or is incapable of judging. Bob has explained that you are tech friendly and know enough to judge quality work. This particular job for me represents an opportunity to demonstrate my abilities.
When done, you will find that the wiring is neatly finished and connected. It will be in keeping with EIA/TIA standards, with performance and maintenance in mind. The cables will be labeled and dressed professionally in an organized manner. My work is neat and fastidious. My intention is that on delivery you will see that my work is of the highest standard, bar none.
Please compare my price to the market rate. You will find that I’ve quoted at a considerable discount. The reasons for this are because of my friendship with Bob, because this is new construction with few complications and most importantly, because I wish to win your admiration as I continue to build my list of enthusiastic clients.

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I have approached Bill a number of times about a written agreement and as yet have nothing. I'm supposed to meet with Bill on Friday to come to an agreement. Today we reached an impasse. I want to do this job but not according to Bill's interpretation.

I would like to believe I have no committment to Bill until we sit down and sign an agreement.

Can anyone tell me, have I created a binding agreement when I sent the above quote / proposal???

Can Bill insist that I do this work as stated in this document?

Thanks
Instauratio
 


B

bdunham7

Guest
No, you are not bound. You can simply change your mind if you wish.

To be binding, a contract is generally required to have three things (elements).

1. An offer (by you in this case). This you have.

2. Acceptance (by them). You don't have this.

3. Consideration. Since you don't have acceptance, this is moot. But in some cases, a contract is void even if both parties have agreed on something just because consideration is lacking. For example, if you agreed in writing, signed in blood, notarized and whatever, to do their entire network for free, you couldn't be held to that because there was no consideration. OTOH, if you agreed to do it for a dollar, you'd be bound. Consideration doesn't have to be monetary, but if it's not, it generally needs to be specifically set out as such.
 

instauratio

Junior Member
Thank you for the time to read and reply,

I wondered about the 3 items that you specified and thought, I still may have other parts to this that may meet those.

The consideration part would be in place because I have offered my price in the quote?? Or does it depend on my getting actual payment of money?

another very relavant detail that you reminded me of: I spoke with Bill on the phone about doing the work, after I sent the proposal. He asked me some questions and then indicated that he had no problem with me doing the work (acceptance?). But, I also immediately made it known that I wanted a written agreement.

Then also, to complicate matters, I have already done some work at the site (about 1 %). I had a small window of opportunity to mount some hardware that can't be mounted after the drywall goes up. If I didn't mount this hardware, it would have caused me a lot of grief later. So I did it in spite of not having a written agreement and because I anticipated that the agreement would eventually be reached.
 
B

bdunham7

Guest
What is your goal? Do you want out of this deal at all costs or do you want to do it on the terms provided in your offer? In what way do they want to modify the terms of the agreement? You said you didn't want to do it 'as Bob interpreted it', what does that mean?

As far as your questions, you would have acceptance if they agreed to your offer, but if they don't agree to it as-is and you don't agree to any changes, then you don't. The money you have in the offer is the consideration, if they agree to that.

How well do you know these guys? Are they setting you up to screw you? I would write them a letter asking them whether or not they accept your offer. You want writing. As far as the work you've done, it would be evidence that there has been acceptance of an offer, but unless they have other evidence, your original written offer is the only hard evidence of what was offered and purportedly agreed to.
 

instauratio

Junior Member
details

I was trying to keep this succinct, but obviously I left too much out. I want to do the job exactly as much as I don't want to. If I do the work I will do very good work. If I don't, I won't shed one tear.

Bob is a former associate whom I trust. He will be responsible for the network after I install it. He wants me to do the work because he knows how much I care about quality work. He recommended me and promised me that he would work on Saturdays and even the Holiday with me to do the job in tandem. This offer on his part I believe was sincere.

However, if you notice in my letter to Bill, I mentioned several times "with Bob's assistance". I did not specify that this assistance would be exactly 50% of the work. It's implied several times, but never stated. This is because I saw this letter as a proposal / non binding. I felt I would follow with written terms.

After the letter was sent, I spoke with Bill and explained that I felt the total work would amount to 200 hours. I would be responsible for 100 of those. Bill replied that Bob is pretty busy and "might" not be able to give that much time. Believeing that Bill meant he may fall off as much as 20 to 30%, I told Bill I have resources that I could draw on if it were a question of getting the work done by the deadline. On the phone with Bill, I was flexible and forgiving because I saw this as work for my friend Bob who is forthright and honest - I did not anticipate what was to come.

At the time I believed Bob had Saturday's available and would be there because he wanted to pick up some skills from me. I know understand that not only does Bob not make his own schedule - he is required to work the Saturday's to get the work load done. This tell's me that Bob will not be of any help or if he is it will be of token assistance.

I believe Bill is using my words to write himself a blank check for 100 hours worth of free work. I believe he intends to provide Bob for 5 hours "assistance" and then pretend that he has met his side of the bargain.

On Friday, I want to be able to tell Bill exactly what I meant by "with Bob's assistance" and place a written agreement stating that I expected Bob for 100 hours. I want to be able to walk out of Bill's office if he does not agree.

I should mention again that I have aproached Bill by phone on at least 3 occasions in an effort to meet and make a written agreement. Each time I was told that he was very busy but to just give him a call later and he'll work me in. There is at least a clear verbal acknowledgement that we needed to discuss the details of this agreement before continuing.

My dilemma is that Bill may see an agreement here, and I might be bound to the proposal I already sent him. To restate, I need to know if I can put a written agreement in front of Bill and refuse to do the work if he doesn't sign it?
 

Who's Liable?

Senior Member
Of course you can... I wouldn't do any work UNTIL he signed it... Just because he's a good friend, does not mean he will honor an oral agreement. Send him a letter specifically giving a deadline that he has to sign a written agreement for said services. If he does not meet that deadline, you do not need to provide any service to him. ALWAYS protect yourself with a written contract.
 

instauratio

Junior Member
progress

Thanks for taking time to reply all.

I met with Bill this morning and he seems to have had a change of heart. He is being much more amiable and is currently reading the written contract I presented him. I expect that this is going to work fine. It should - my price was very modest and I take great pride in my work.

Thanks for all of the advice. I'll be sure and post when I get the signature!!
 

Aurorien

Junior Member
Good to see everything is going better for you. A friendly advice on business with friends and associates: be paranoid and be careful.

If things are not stated clearly and written into the contract, friendship and future business may be in jeopardy. Also, stay tough and don't back off your stand. You are already giving them a large discount, so don't let them lowball you. Good luck!
 

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