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Contract case

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skadet

Member
What is the name of your state? California.

I was the plantiff in a case and was ruled against. The case was a simple contract matter. The relevant language goes like this:

"Person x promises to pay person y $xxx as a deposit for work done, due now.

Person x promises to pay person y $xxx for the balance due on work done, due [in the future]".

Simple.

Person x payed me (person y) the deposit, but didn't follow through on the balance. So, I sued him for it. As clear as the contract is, the judge ruled against me. In addition, she never let my two witnesses testify (one which came from 8 hours away to do so).

I intend to file a motion for reconsideration, but if any of you can shed some light on why a judge would rule against this seemingly simple case, I'd like to know.

Thanks in advance,

Skadet
 


tigger22472

Senior Member
Without knowing more or the actual RULING by the judge it'll be too hard to come to an exact answer for you. I guess the first question would be is did you complete the job?
 

skadet

Member
The only "ruling" they offer that I know about is the entry of judgment that says "The defendant does not owe the plaintiff money/property". If it's possible for me to review the reasoning, please point me in the right direction.

The job was completed, both witness were supposed to testify to this fact.

Question though: the contract was for work DONE (aka already completed), not for a product. The language of the contract makes this clear - he was buying my time.

Thus, even if the judge were to believe that the job was not completed (which would have been impossible IF she had allowed my witnesses to testify) -- holding the contract unenforcable would be tantamount to saying an employee shouldn't get paid because he didn't finish the job he was assigned to that day - a clearly dubious line of reasoning.

Please provide thoughts.
 

tigger22472

Senior Member
skadet said:
The only "ruling" they offer that I know about is the entry of judgment that says "The defendant does not owe the plaintiff money/property". If it's possible for me to review the reasoning, please point me in the right direction..
K... What did the judge SAY in court leading to this conclusion and ruling?



skadet said:
Question though: the contract was for work DONE (aka already completed), not for a product. The language of the contract makes this clear - he was buying my time..
Hence why I asked if the work was already done as that's what the contract stated.



skadet said:
Thus, even if the judge were to believe that the job was not completed (which would have been impossible IF she had allowed my witnesses to testify) -- holding the contract unenforcable would be tantamount to saying an employee shouldn't get paid because he didn't finish the job he was assigned to that day - a clearly dubious line of reasoning.

Please provide thoughts.
If the judge believed the work wasn't done then she would not enforce the contract. The contract clearly states that the amount due is for work already done.

You said this is word for word what the contract stated....
Person x promises to pay person y $xxx as a deposit for work done, due now.

Person x promises to pay person y $xxx for the balance due on work done, due [in the future]".


I suspect the problem is that it does seem rather vague. If this is the actual wording, word for word, how is one to know what work was done at the future date and what that work was to entail?

What sorts of things did the judge ask you in order to come to this conclusion? Also when was this contract entered into and when did the 'breach' occur?
 

skadet

Member
tigger22472 said:
K... What did the judge SAY in court leading to this conclusion and ruling?
First, I should mention the contract was for a computer program.


She asked if the program was in working order. Defendant produced a receipt for $150 saying he had to hire someone to 'fix' it to make it operable. I told the judge that both of my witnesses were prepared to testify that they personally observed me operating the computer program and that it worked perfectly the last time I had my hands on it. She did not ask for their testimony.

tigger22472 said:
Hence why I asked if the work was already done as that's what the contract stated.
The work had already been completed. The gist of the contract was to outline a payment schedule for the Defendant.

An additional point of the contract was that I would provide an instruction manual "due upon payment in full for the program". He complained to the judge about not receiving instructions. I pointed out that I wasn't bound to provide instructions until the payments were made.


tigger22472 said:
You said this is word for word what the contract stated....
Person x promises to pay person y $xxx as a deposit for work done, due now.

Person x promises to pay person y $xxx for the balance due on work done, due [in the future]".

tigger22472 said:
I suspect the problem is that it does seem rather vague. If this is the actual wording, word for word, how is one to know what work was done at the future date and what that work was to entail?

What sorts of things did the judge ask you in order to come to this conclusion?
I'll go get the contract and give you actual wording in a moment. As to your second question, she asked if any money had been paid. I said, yes, the deposit was paid.

The Defendant said he gave me some additional cash as an advance. He had no receipts. He did give me a couple bucks to buy gas and misc. componants for his program. No receipts on either side, but she did seem to acknowledge that this money wasn't part of the contract.

tigger22472 said:
Also when was this contract entered into and when did the 'breach' occur?
Entered in March, breach occured when the due date for his full payment passed, lawsuit filed (I believe) about a month after that.
 

tigger22472

Senior Member
skadet said:
An additional point of the contract was that I would provide an instruction manual "due upon payment in full for the program". He complained to the judge about not receiving instructions. I pointed out that I wasn't bound to provide instructions until the payments were made..
Did you have this manual with you in court? Did the judge order you to give this to the defendant?


skadet said:
The Defendant said he gave me some additional cash as an advance. He had no receipts. He did give me a couple bucks to buy gas and misc. componants for his program. No receipts on either side, but she did seem to acknowledge that this money wasn't part of the contract...
Did either of you testify as to how much money was received? I believe this is probably where your problem lies. I seriously doubt that the judge acknowledged that the money wasn't part of the contract. It's more likely that even though there were not receipts you acknowledged that you received monies that the defendant stated he had given.

What was the price of this computer program?

skadet said:
Entered in March, breach occured when the due date for his full payment passed, lawsuit filed (I believe) about a month after that.
Ok.. so that rules out there being an SOL issue.
 

skadet

Member
So the precise wording is as follows:

_______________
I, person x, agree to pay person y the sum total of $x,xxx, due and itemized as follows:

*$xxx on 9 May 2005 as a deposit for the work done on the computer program
*$xxx on or before 15 May, 2005, as the balance for work done on the program
*$xxx on or before 15 May 2005 as payment for services performed in Redding, CA

I, Person Y, agree to do the following:
*Draft instructions for the program, due upon payment in full for the work done on the program.

Signed on 9 May, 2005
____________________


Now, that 3rd point about Redding, I informed person x I wouldn't be doing this work because I didn't feel comfortable working with him anymore. He had earlier that day - post-signing the contract - physically assaulted me (I have a witness to this, too... so I (understandably, i think) didn't want to work with him in person again. I told the judge I did not expect this payment.
 

skadet

Member
tigger22472 said:
Did you have this manual with you in court? Did the judge order you to give this to the defendant?
He actually had a copy that I had drafted by memory (since he wouldn't allow me access to the program after the date the contract was signed). It was about 95% correct -- a couple passwords were wrong, I think. He never complained to me about it.

tigger22472 said:
Did either of you testify as to how much money was received? I believe this is probably where your problem lies. I seriously doubt that the judge acknowledged that the money wasn't part of the contract. It's more likely that even though there were not receipts you acknowledged that you received monies that the defendant stated he had given.
He claimed $300. To the best of my memory, it was $200, but without receipts it's hard to tell. There's no mention of it in the contract, and seeing as he wrote a check for that deposit, it's logical to assume if he was paying on the contract he would write a check for that, too.

tigger22472 said:
What was the price of this computer program?
$400 depost, $800 balance = $1,200. An absolute steal.
 

tigger22472

Senior Member
skadet said:
So the precise wording is as follows:
Now, that 3rd point about Redding, I informed person x I wouldn't be doing this work because I didn't feel comfortable working with him anymore. He had earlier that day - post-signing the contract - physically assaulted me (I have a witness to this, too... so I (understandably, i think) didn't want to work with him in person again. I told the judge I did not expect this payment.
So, you expressed your intent to breach on the contract. Did you testify to the altercation to the judge? Did you file a police report from the assault for proof or was this a your word against his issue?

skadet said:
.He actually had a copy that I had drafted by memory (since he wouldn't allow me access to the program after the date the contract was signed). It was about 95% correct -- a couple passwords were wrong, I think. He never complained to me about it.
so now here you are changing your story. You stated he was not entitled to this until payment was made in full and now you are saying that he had one...just a bad one (which by the way isn't what he was paying for)

skadet said:
He claimed $300. To the best of my memory, it was $200, but without receipts it's hard to tell. There's no mention of it in the contract, and seeing as he wrote a check for that deposit, it's logical to assume if he was paying on the contract he would write a check for that, too.
It's likely since you don't 'remember' that the judge DID in fact believe this was for the contract. If this was for as you said 'gas' and the like it would not be unusual for it to be in cash and you testified you received it. As a business person it is also your duty to give receipts. I highly doubt he just handed you 300$ and you thought it was free and clear and neither did the judge.

skadet said:
$400 depost, $800 balance = $1,200. An absolute steal. .
Ok.. so he paid the $400.00 deposit... gave you another $300.00 so that was $700.00 How much of the 1,200$ was for the service you were refusing to provide? How much does the manual cost?

Let me just state this, you are lucky that it's late on a weekend night as not much goes on here (because there are posters here that would have chewed you up and spit you out by now), but also that I'm in a good mood because your story keeps getting things added to it... this went from a simple contract to a breach ON YOUR part, as well out some outlandish things. Now, if I'm catching that here I can only imagine what that judge saw.

You also repeatedly told me that the work was done. That was not true. You refused to fullfill the contract.
 

skadet

Member
tigger22472 said:
So, you expressed your intent to breach on the contract. Did you testify to the altercation to the judge? Did you file a police report from the assault for proof or was this a your word against his issue?
I have to disagree with you here. Go re-read the contract. It didn't say I promised to show up, it said he owes me money for "services [to be] performed" at an event in Redding (this is an event, and seperate from the computer program issue).

I tried to file a police report, but the Sheriff I spoke with said that even though I had a witness, it would be my word vs. his, and I would have to do a citizen's arrest, etc. He advised me to let it go, collect my money, and be done with him. He also said if I needed proof that I came in to try and file, he'd be glad to provide it. He added that he's been out to Person X's house on a couple occasions (he lives in a small town) and remarked that Person X has "a bad temper when he's mad".

tigger22472 said:
so now here you are changing your story. You stated he was not entitled to this until payment was made in full and now you are saying that he had one...just a bad one (which by the way isn't what he was paying for)
No, the contract stated he wasn't entitled to it until payment was made in full. We had orally agreed to meet at the event in Redding and exchange payment & instructions, while I also worked at his event for him. Since I informed him that I wouldn't be in Redding, I thought the honorable thing to do would be to send him some instructions. Stupid me.


tigger22472 said:
It's likely since you don't 'remember' that the judge DID in fact believe this was for the contract. If this was for as you said 'gas' and the like it would not be unusual for it to be in cash and you testified you received it. As a business person it is also your duty to give receipts. I highly doubt he just handed you 300$ and you thought it was free and clear and neither did the judge.
I'd like to see some legal precident for this opinion. Both you and the judge may not believe it's "free and clear money", but without proof to that end, I don't see how anyone could legally apply that $300 to the contract.

But let's say that's just what she did. Where's the remaining $500?

tigger22472 said:
Ok.. so he paid the $400.00 deposit... gave you another $300.00 so that was $700.00 How much of the 1,200$ was for the service you were refusing to provide? How much does the manual cost?
The total on the contract was $1,400: $400 deposit, $800 balance, $200 for service I refused to provide. The manual was included in this price, as the contract states.

tigger22472 said:
You also repeatedly told me that the work was done. That was not true. You refused to fullfill the contract.
I think you must misunderstand, or I'm not being clear, or both.

Points 1 and 2 of the contract say "work done". This work was done. 2 witnesses testify to this, I could get more (including the head of the local chapter of a well-known charity who I trained to use the program).

Point 3 (about Redding) of the contract says "services performed". These services were never performed by me, thus I do not contend that he owes me money for this. I freely admit it.
 

tigger22472

Senior Member
http://www.lectlaw.com/files/bul08.htm

"Breach of contract leaves the nonperforming or improperly performing
party open to a claim for damages by the other party. The non-
breaching party is relieved of his obligations under the contract by
the other party's breach."

"The aggrieved party, to help support his claim for breach, should
have done all the things required of him under the contract up until
the time of breach, and must have done nothing to make it impossible
or unreasonably difficult for the other party to perform his share.
The nonperforming party can be expected to make excuses for his
conduct, and he will try to find ways to blame the other party--an
excellent argument for performing one's own side of a contract
punctiliously and in a manner that leaves a record which others can
see."

https://law.freeadvice.com/general_practice/contract_law/breach_contract.htm

When does a breach of contract occur?
If one side fails to stick to her/her/its part of the bargain, there is a breach. A breach occurs when:

one party to a contract makes it impossible for the other parties to the contract to perform;

a party to the contract does something against the intent of the contract; or

a party absolutely refuses to perform the contract.

Not all breaches of contract are necessarily "contract killers" which would end up in a lawsuit. Much would depend on whether the breach is "material" or "immaterial" and who the parties are. If the breach is immaterial, you may have the option to:

ignore or excuse the defect and continue on as if nothing occurred,

point out the problem to the responsible side and give it/she/him an opportunity to fix it,

refuse to pay anything more until it is fixed, or

correct the work yourself and deduct the cost from any payment.

What makes sense for you will depend on the facts. Where the matter is substantial, the advice of an attorney can help you.


http://www.allbusiness.com/articles/Legal/4141-35-1814.html

A contract is an agreement between two or more parties that creates an obligation to do or not do something. A breach of contract is the existence of an agreement or bargained-for exchange where one of the parties fails, without a legally valid excuse, to live up to his or her responsibilities under the contract.
A breach of contract usually occurs by one or more of the parties in one of the following ways:


Failing to perform as promised.
Making it impossible for the other party to perform.
Making it known there is an intention not to perform.
A contract may be breached in whole or in part.

You stated you must not have communicated this well.. Seems to me you communicated it just fine.
 

skadet

Member
You stated you must not have communicated this well.. Seems to me you communicated it just fine.
I think you're missing the point.

"The aggrieved party. . . and must have done nothing to make it impossible
or unreasonably difficult for the other party to perform his share.
Being battered is, in my opinion, making it unresonably difficult for me to perform my share.

Even if you disagree, remember:
A contract may be breached in whole or in part.
We both breached the contract. Are you saying that makes it unenforcable?

There are four basic elements of this contract:


1. Promise to pay a deposit for work that was already rendered
2. Promise to pay for work that was already rendered
3. Promise to pay for services that were to be performed in the future
4. Promise to produce something, contingent on payment specified in #2


Element 1 was fulfilled. This should serve as prima facie stipulation that the work was indeed rendered. The question of whether the work (as addressed in points one and two) was rendered is clearly answered: Me and at least 2 witnesses can testify to this fact, and the fact that the deposit was paid.

In this context, you should understand "deposit" as "a partial or initial payment of a cost or debt". An agreed-upon cost of $1,200 for the computer program was enumerated - $400 as the first payment, $800 as the second and last payment.

Thus, there can be no question that the work was performed (that the programming of the computer program was complete).

The second element relates to the first as the second and final payment for the same work partially paid for in element 1. This element was not fulfilled by the debtor.

The third element is straightforward - when a specific future service is rendered, a specific payment is made. This specific service was not rendered, thus, payment is not required.

The fourth element is likewise straightforward. When element #2 is fulfilled, I have an obligation to produce a certain thing (instructions). Since #2 is still unfulfilled, my requirement to produce instructions is not yet enforcable, although it still can be (I think) once payment is made.


Think of it this way. If you have a cell phone, you probably signed a contract that included a statement of "payment of $0.20/per message is charged for text messages". If you don't send a text message, you aren't charged. Does that mean that your entire contract is null and void? Is someone in breach? Clearly not. It is a simple, yet important element of a contract - the conditional agreement.

Since element #3 was a conditional agreement, we can safely say the rest of the contract is enforcable.
 

I AM ALWAYS LIABLE

Senior Member
My response:

This is all a moot exercise; i.e., meaningless mental mastubation.

It doesn't matter anymore. The fact is, you sued in Small Claims court. You lost. Game over.

A plaintiff does not have the right of appeal in California Small Claims court - - only the defendant has that right. When you, as a plaintiff lose, it's over - - forever. It's called "Res Judicata."

If you read the back of your Small Claims complaint form, it tells you this.

IAAL
 
Last edited:

skadet

Member
It appears you didn't read the original post. I'm getting ready to file a motion for reconsideration. As such, I need to point out how the court erred and what the court did to warrant reconsideration -- I'm going with the fact that the judge did not allow my witnesses to testify.

If you read the original post, it tells you this.
 

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