Legal Question in Business Law in Illinois
No contract for services
I need some advice concerning a business providing a service without an agreed upon contract. We are being charged for a service provided despite a contract never existing or being negotiated upon. The business is threating a lien on our property and we are curious about their right to do so.
2 Answers from Attorneys
Re: No contract for services
If you asked a company to provide a service and they did so, a court would generally find that there was a contract with customary commercial terms.
For example, say that you have a ten unit apartment building and hire a waste hauler to dispose of the building's trash, without specifically agreeing upon terms. If the waste hauler does its job for three months and sends you monthly bills of $85 per month (assuming that is a customary charge for similar apartment buildings), you likely will be responsible for those charges. If the trash hauler sends you a bill for $500 per month (an amount which materially exceeds customary charges for similar waste haulers), it is likely that the court would find that your are liable to the waste hauler, but only for a "reasonable" amount.
You don't say what kind of service the other business provided. Generally, creditors must get a judgment in a lawsuit before they can file a lien, but there are many, many exceptions. If the service was the type covered by one of the lien statutes in Illinois (for example, making improvements to real estate or providing storage services) the business providing the service may very well have the right to file a lien.
If you a problem with the quality of the service you received, you should talk to a lawyer immediately. If you are simply thinking that the "no contract" argument excuses the obligation to pay for services you received, you should pay up now and avoid additional costs.
Re: No contract for services
If you accepted the service, you are obligated for a commercially reasonable rate. If the service is related to real estate improvement, a lien is available by statute.