Legal Question in Construction Law in California
Customer verbally cancelled written contract
A customer we had signed a contract then verbally cancelled it over the phone a day before work was to begin, she was given the money to pay for this from her insurance co. based on the contract she signed, now she will not answer calls or sign termination agreement, we do not want to be held liable if she has just cancelled to get a cheaper crew to do the work and not mentioned this to her insurance company, is there anything else i should do??
2 Answers from Attorneys
Re: Customer verbally cancelled written contract
You have no liability to her insurance company unless the bid wss fraudulent. I assume that your customer was a homeowner. Based upon this assumption, did your contract contain the "right to cancel" language required by the contractor's license law for home inprovement contracts? If not, your customer had an absolute right to cancel at any time. If the contract had the necessary languare, the homeowner has the right to cancel up to 3 business days after she signed the agreement. In any event, the best you can do under the circumstances is to send her a letter documenting her phone call and send a copy to her insurance company. Also, CANCEL any permit which you have obtained.
Good Luck
E. LEOANRD FRUCHTER
Re: Customer verbally cancelled written contract
You have no liability to her insurance company unless the bid wss fraudulent. I assume that your customer was a homeowner. Based upon this assumption, did your contract contain the "right to cancel" language required by the contractor's license law for home inprovement contracts? If not, your customer had an absolute right to cancel at any time. If the contract had the necessary languare, the homeowner has the right to cancel up to 3 business days after she signed the agreement. In any event, the best you can do under the circumstances is to send her a letter documenting her phone call and send a copy to her insurance company. Also, CANCEL any permit which you have obtained.
Good Luck
E. LEOANRD FRUCHTER
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