• FreeAdvice has a new Terms of Service and Privacy Policy, effective May 25, 2018.
    By continuing to use this site, you are consenting to our Terms of Service and use of cookies.

78.7 k contract cancelled

Accident - Bankruptcy - Criminal Law / DUI - Business - Consumer - Employment - Family - Immigration - Real Estate - Tax - Traffic - Wills   Please click a topic or scroll down for more.

S

sulconst2

Junior Member
What is the name of your state? new jersey

have a signed contract to rebuild a portion of a home which was damaged in a fire. homeowner (HO) had a second estimate for 70k but chose my company. could not get required deposit because HO said he was waiting for the insurance check. first payment was due 1 week before job begins. job to begin approx. 5/29 when permits are approved. been calling since 5/20 to get payments and finalize schedule. HO finally called 5/24 saying my price is crazy. that his brother will do the job. also said second estimate lowered price to 65k. i say we have a signed contract and i allocated that time for his 6 week job. 1 week notice does not give me the opportunity to fill that large slot. HO does not care. says my price was out of line even though he had a second estimate only 10% cheaper.

my question: what should be my coarse of action?

im adding a scan of the contract to help.

http://i39.photobucket.com/albums/e178/sulconst2/b0121721.jpg
 
Last edited:


H

HappyHusband

Senior Member
sulconst2 said:
What is the name of your state? new jersey

have a signed contract to rebuild a portion of a home which was damaged in a fire. homeowner (HO) had a second estimate for 70k but chose my company. could not get required deposit because HO said he was waiting for the insurance check. first payment was due 1 week before job begins. job to begin approx. 5/29 when permits are approved. been calling since 5/20 to get payments and finalize schedule. HO finally called 5/24 saying my price is crazy. that his brother will do the job. also said second estimate lowered price to 65k. i say we have a signed contract and i allocated that time for his 6 week job. 1 week notice does not give me the opportunity to fill that large slot. HO does not care. says my price was out of line even though he had a second estimate only 10% cheaper.

my question: what should be my coarse of action?

im adding a scan of the contract to help.

http://i39.photobucket.com/albums/e178/sulconst2/b0121721.jpg
Click to expand...
what should be my course of action?

Sue for breach of contract.
 
S

sulconst2

Junior Member
what could be awarded? total income lost? how long could i expect this to take? should i put a lien on the property?

lots of questions I know, but need lots of answers.
 
B

BelizeBreeze

Senior Member
sulconst2 said:
what could be awarded? total income lost? how long could i expect this to take? should i put a lien on the property?

lots of questions I know, but need lots of answers.
Click to expand...
The contract is of sufficient value that I would advise contacting a local attorney to file suit (this can't be done in small claims).

IF you win, then yes, you can go about identifying assets and recovering your costs. However, the parties may be ordered to complete the contract, which means that he pays you and you do the work.

talk it over with a local attorney.
 
S

sulconst2

Junior Member
thanks for the input, i truly need it. have an appt with an attorney i found referenced here. had to go pick up some tools i lent the HO for a section he was doing on the home. his brother was on site starting my section. if HO gave me enough notice i would maybe let it pass but he turned my income for the next few weeks upside down.
i'll update as it progresses.
 
S

sulconst2

Junior Member
just got back from a consultation. attorney said being i dont have a start and finish date written that makes my contract not "correct". says if he would fight against my case thats were he would look. if i lost my case i could be liable for HO's attorney fees. said there is a 50 - 50 chance of me winning. would probably cost 6k in his fees (trial). if i lost it could cost another 6k for HO attorney fees. so risking 12k to recoup 25k. doesn't sound good.
any thoughts? :confused:
 
Zigner

Zigner

Senior Member, Non-Attorney
sulconst2 said:
just got back from a consultation. attorney said being i dont have a start and finish date written that makes my contract not "correct". says if he would fight against my case thats were he would look. if i lost my case i could be liable for HO's attorney fees. said there is a 50 - 50 chance of me winning. would probably cost 6k in his fees (trial). if i lost it could cost another 6k for HO attorney fees. so risking 12k to recoup 25k. doesn't sound good.
any thoughts? :confused:
Click to expand...
Your "contract" states $5,000 due upon acceptance. If you never received $5,000 then you never had an accepted contract.
 
S

sulconst2

Junior Member
Zigner said:
Your "contract" states $5,000 due upon acceptance. If you never received $5,000 then you never had an accepted contract.
Click to expand...

wouldn't acceptance be when he signed, accepted?
 
P

pojo2

Senior Member
That contract states 5K at acceptance and 2K 1 week before work begins? In my opinion when the contracts were signed you should have received funds in the amount of 5K then one for 20k 1 week before the work began.

But don't know how that would affect the legitimacy of the contract.

You need to get together with an Atty and draw yourwelf up a very detailsed contract outlining ALL aspects of the transactions you become involved with, such as what happens if lots of things happen!
 
S

sulconst2

Junior Member
contract was signed 3 weeks ago. didnt get a deposit because he said he was waiting for the insurance check. i told him i was concerned not having a deposit to "lock" my time, he guaranteed the job was mine verbally and with a handshake. expected the deposit when it became available.

the payment at "1 week before" is 20k. and yes i agree about a more detailed contract. surprised that not having a start and finish date is weighing against me so. when i sold the job the architect plans werent finished, then the permits needed to be filed by the homeowner. he is on the permit as the contractor. my contract was for a section of the total job. the verbal plan was to start when permits were approved then 4-6 weeks to finish.
 
You must log in or register to reply here.

Find the Right Lawyer for Your Legal Issue!

Fast, Free, and Confidential
data-ad-format="auto">
Top