Legal Question in Business Law in Illinois
Verbal Agreements, Deposits and Contracts
I recently spoke with a company regarding providing entertainment for a public event. I told the company I was very interested in them providing services for me. I was told that they would be sending a contract and I needed to sign it and return it with a $50 deposit.(Total event service fee $250) I never signed the contract or sent the deposit back. I did not call the company to tell them I would not need their services either. They showed up and found that I had canced the event and are demanding payment. I feel like I don't owe them anything because I didn't sign the contract. The contract says...This is a personal service contact and a written confirmation of our telephone agreement for entertainment entered into by both parties. The service provider feels we had a verbal agreement event though the contract was not signeed and I feel like we dont...what do you think?
1 Answer from Attorneys
Re: Verbal Agreements, Deposits and Contracts
Based on only the facts in your question, when you spoke to the service provider and told them you needed services, that was an offer. Had they just shown up with nothing more, that would have been acceptance, and you would potentially be liable for contract damages. However, they counteroffered by requesting a deposit and a signed contract. This counteroffer, under basic contract law, rejected your first offer, and it was no longer on the table for them to accept. You did not accept their counteroffer, because you didn't sign and send back a deposit and contract. So you are off the hook, and they do not have a legal claim. Having said that, if it goes further and they sue you, you should consult an attorney to explore your rights in the circumstances.
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