Legal Question in Construction Law in Montana
Verbal Contract Termination
As a contractor some ''friends'' asked us to build them a two story garage, one with an apartment above it. I told them the price would be around $31,000.00. They remitted a $5,000.00 deposit to which we proceeded and completed the concrete slab. We were preparing to order the materials for the building project when they terminated our oral agreement, for no valid reason, and ultimately hired another contractor to finish the work. Can I sue them for lost profits and income?
1 Answer from Attorneys
Re: Verbal Contract Termination
Contracts for more than $500 must be in writing. You might be able to collect any costs for work already done, but you don't get the rest without a written contract. Contractors need their own attorney; you're in a cut-throat business.