Legal Question in Business Law in New Jersey
being billed after implied favor
I worked for our family business until november of 2005, when my father layed me off due to parents divorce. During employment, a business acquaintance said he would drop off some dirt and spread it out for me at my new home under construction. Being a landscape company, he had access to free topsoil and offered it to me. He implied it would be no charge and i signed no contract, invoice or anything like that. Now after 8 months he has sent me a bill for $2000. This bill arrived shortly after i began working for a competitive company in the same field. Being friends with my father, i feel this is a vindictive ploy of get-back. Now after sending 3 bills in 6 months, he is threatening to send me to collections. Am i legally required to pay this invoice even though i never agreed on the price and was led to believe it was a business favor. Since i was also doing numerous favors in working for this landscaper. I work as an irrigation tech.
2 Answers from Attorneys
Re: being billed after implied favor
the answer to your question depends on what was agreed to by both you and him. your story leaves that unclear. i could not predict what a Judge would decide, you may win or you may lose. i think it is nasty for him to do this without speaking to you at all.
If you would like, give me a call; I am in northern New Jersey. I will be happy to discuss this with you; the telephone consultation will be free.
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Re: being billed after implied favor
There are a number of issues in play here. It is not likely that a court would find a contract here because of the statute of frauds which requires that contracts in excess of $500 be in writing. However, there were materials delivered and so there is an evidentiary issues as to whether that was a gift or whether he had a reasonable expectation of payment. A court would have to decide that based on the facts.
It is doubtful that any collection company would be interested in the matter until it is reduced to a court judgment. Under the Fair Debt Collection Practices Act, you can ask any debt collector to provide you with the evidence of the debt that it has. Without any paper, you can just tell them to stop contacting you. So, the matter wind up in court anyway unless he writes it off.
See also: http://info.corbettlaw.net/lawguru.htm
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