Legal Question in Consumer Law in Massachusetts
Binding verbal contract for home remodeling ?
We had someone start doing work on our basement (finishing it off, sheetrock, painting etc. - general carpentry work), although discussed verbally but with no "signed" written contract. He has been placed in detox for a month, and we want to find someone that can come in and complete the job - are we bound by any verbal agreement with him? Written contract was produced, but never signed --- Absolutely nothing is in writing. We would like to renegotiate with his "former" employees -- Also, custom countertops and doors had been ordered, but not paid -- can we pay the manufacturer and accept delivery ?
2 Answers from Attorneys
Re: Binding verbal contract for home remodeling ?
Verbal contracts are indeed binding legally. One trouble is that there can be difficulty establishing proof of what the agreement was without anything written, but there is a contract generally and it is binding.
The written contract produced but never signed is pretty good evidence of what the agreement was. So is / are the understandings of all the workers, suppliers, subcontractors, etc.
However, I assume that the guy in detox isn't getting the job done for you any more, at least not while he's incarcerated. I'd try to come to an understanding with him -- or have a lawyer negotiate with him -- and then see if you can use his crews, workers, and suppliers to finish the job. As for the suppliers, be absolutely sure you're getting the same deal he would have gotten, if you can, and pay no more but also no less. (If you try to pay less, they're being unfairly squeezed by you, having already made custom goods which they can't sell elsewhere, and they could still come after you for the difference after you pay part and they deliver. It's just not fair.)
Re: Binding verbal contract for home remodeling ?
I didn't finish one thought last message; sorry:
if the guy in detox is your GC and isn't getting the job done for you as agreed upon, you are allowed to wiggle out of the contract, but courts won't give you much wiggle room. For example, you're not going to be able in a court to get him to complete the job for much less than you originally bargained for. You might be able to get someone else to finish and you could potentially save yourself some money, but if you don't have an agreement with him (while he's sober!), he might pursue you for the "benefit" of the contract, i.e., the difference you saved yourself. (You have good arguments the other way, but I won't go into them here.)
It's best to settle up with him. One thing that happens when a contract breaks down is that a court determines the value (called quantum meruit, the worth) of the work done and would probably at least make sure the drunk guy got paid what he shelled out and a little margin on top of that. You might never go to court, but it's good to think of what a judge would do as a guideline.
Call me if you'd like to go a level deeper in this conversation. I work closely with a construction lawyer and my brother-in-law is an experienced GC, so I know a bit about failed expectations in construction jobs.