Legal Question in Business Law in New York
Contractor Contract
I hired a contractor to do a dormer, we signed a contract and he got 93100.00 from me however when I wanted to hold the final payment until he finished. He became angry and filed a mechanical lien. Now the catch is that he is not the owner or an officer of the corporation, his son has the contractors license and the company is incorporated by his son. He has no say or power he running the company through his sons name. Does this make the contract legal and did I lose my right to my money that he deposited in his son corporation account. what do I do? Can he do that?
2 Answers from Attorneys
Re: Contractor Contract
A lawyer would need to review the contract to make the determination you desire, but if the person who signed it is not authorized to do so, it is unlikely that the contract is enforceable. However, if the work was done, the contractor probably has a cause to collect the fair value of the work performed. As to the mechanic's lien, this again would require a review of the contract, and the applicable law in the jurisdiction in which it was signed, and the work done. Last, it is possible that the person who signed the contract may be deemed to be an agent of the company with apparent authority to sign such contracts, making the contract enforceable. If you would like to discuss this further, please do not hesitate to contact Fidelis Law at [email protected].
Re: Contractor Contract
More specifics are required to answer your question. I agree 100% with Mr. DiPaolo's response. What does the contract say about when the last payment is due? Does it provide any strict time frames within which the work must be completed? Is the contract with the son's company? Are you the owner of the house or building, or another contractor? And, very important here, when was the last date on which the contractor furnished labor and/or materials, because depending on whether it is a residential or commercial property, the mechanic's lien may be untimely. Mechanic's liens are hyper-technical - they can be invalid for a number of reasons, including the manner in which they are filed or served, and it is best to seek the advice of an attorney.
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