Contractor won't start job, because he says agreed quote is too low

[fishy21]

What is the name of your state (only U.S. law)? California

I signed a contract with a business to remove a tree on my residential property. 1 day before the scheduled appointment, the owner calls me and says that the price is too low. A previous employee did the initial inspection, and underestimated the cost to do the job. He did an onsite inspection, and he wants to increase the bid by 25%. Anything lower, it would not make sense for him to do the job. I declined the extra cost, stating that we had a contract and an agreed price and he needs to honor it. He says it's not worth it and he can't honor the contract.

What course of action should I do next? If I hire another contractor, can I sue the original business for the difference?

Thank you in advance.

 

[Dave1952]

Contracts often have "consideration", better known as money. Did you pay anything? Put down a deposit? Get some more bids.

 

[fishy21]

Contracts often have "consideration", better known as money. Did you pay anything? Put down a deposit? Get some more bids.

No... I did not put down a deposit because they did not request one. We had an appointment and he back out 1 day before the appointment.

I did get bids, and his was the lowest, which is why I went with him. Can I recover the difference in small claims since he failed to honor the contract?

Thanks.

 

[Zigner]

No... I did not put down a deposit because they did not request one. We had an appointment and he back out 1 day before the appointment.

I did get bids, and his was the lowest, which is why I went with him. Can I recover the difference in small claims since he failed to honor the contract?

Thanks.

The point that Dave1952 was getting at is that there is no contract without consideration of some sort. You can't recover for him failing to honor a contract that doesn't exist.

 

[PaulMass]

What is the name of your state (only U.S. law)? California

I signed a contract with a business to remove a tree on my residential property. 1 day before the scheduled appointment, the owner calls me and says that the price is too low. A previous employee did the initial inspection, and underestimated the cost to do the job. He did an onsite inspection, and he wants to increase the bid by 25%. Anything lower, it would not make sense for him to do the job. I declined the extra cost, stating that we had a contract and an agreed price and he needs to honor it. He says it's not worth it and he can't honor the contract.

What course of action should I do next? If I hire another contractor, can I sue the original business for the difference?

Thank you in advance.

Maybe.

Check your contract and see if he has any wiggle room.

The general rule is that you are entitled to the benefit of the bargain. (BTW, your promise to pay is valid consideration, as is the contractor's promise to do the work. There is no need for money to change hands).

Under the general rule, you can have someone else do the work (thereby mitigating any potential damages) and sue the breaching party for the difference.

The real question is can you collect if you take him to court and win? You don't get to charge for your time in court or for your lawyer's fees unless the contract calls for it. You also don't get punitive damages. So if he bid $1000 and if costs you $1250, is it worth your time to sue for $250?

 

[fishy21]

Maybe.

Check your contract and see if he has any wiggle room.

The general rule is that you are entitled to the benefit of the bargain. (BTW, your promise to pay is valid consideration, as is the contractor's promise to do the work. There is no need for money to change hands).

Under the general rule, you can have someone else do the work (thereby mitigating any potential damages) and sue the breaching party for the difference.

The real question is can you collect if you take him to court and win? You don't get to charge for your time in court or for your lawyer's fees unless the contract calls for it. You also don't get punitive damages. So if he bid $1000 and if costs you $1250, is it worth your time to sue for $250?

Thank you. I will hire someone else and then decide if I want to go after him.