Legal Question in Construction Law in California
Does an oral contract to do work hold in small claims court
I entered into a contract to install some windows, I faxed a contract but did not sign it. The customer states he never received the fax. The customer had given me a check for materials, and a partial payment. Now the customer decided to finish the work himself. Is our original oral contract valid if I have witnesses to the oral contract?
Thank-you
2 Answers from Attorneys
Re: Does an oral contract to do work hold in small claims court
As a very broad and general rule, oral contracts are valid and can be enforced if the terms of the alleged contract can be established with sufficient certainty.
When, however, the contract involves most kinds of home improvement or repair work, various sections of the Business and Professions Code may require either (1) that the contractor be licensed, or (2) that key provisions of the contract be in writing and signed. This would be your first legal hurdle.
If this didn't get your case knocked out of court, you would have to establish that the supposed oral contract was actually formed through "offer and acceptance" and that it wasn't merely preliminary negotiations. The fact that a FAXed contract was sent would be some evidence (although not necessarily conclusive) that the parties weren't yet "in contract' as a result of the oral negotiations.
A full analysis would require information as to the content of the oral discussions, whether the check is evidence of a contract, the extent of the preparation for work and actual work on the "contract" you did, timing of the events, and other matters.
However, on the information given, I don't think your chances of prevailing in small-claims court are better than 50-50 at best.
Re: Does an oral contract to do work hold in small claims court
To supplement my previous answer: All contractors must be licensed in order to sue on the contract, regardless of type of contract or dollar amount. In addition, home improvement contracts for work in excess of $500 must be in writing.
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