Legal Question in Construction Law in Virginia

Contractor under new management/Company New Name

On 2/13/2006, I signed a contract and provided a check for 50% to have a walk-out built from my basement to the salesman. I didn't get the contractor to sign the contract but many e-mails were exchanged with the president of the company. One included the contract on the day the check was provided and signed. During that period, a structure engineer hired by the company provided the drawings. About two weeks ago, my e-mails and calls went unanswered. Then I received a call from the company indicating that the president of the company has sold the business and the new owner wanted to meet with the current customers. I called the state board of contractors and confirmed that the new owner held a Class A license and the company indeed was renamed. I met with the new owner and he reaffirmed his commitment to perform the job. A week past and the new owner called and asked to back out of the contract and refund my deposit less the expense paid to the structure engineer which I refused and insisted for the entire amount. He agreed. He seemed sincere but up to this point it has all been lip service. Is he required to refund the deposit? If I don't get the refund, can I take the former owner and salesman to court?


Asked on 4/14/06, 8:10 pm

1 Answer from Attorneys
Michael Hendrickson Law Office Michael E. Hendrickson

Re: Contractor under new management/Company New Name

Yes, assuming that the new owner of the business

assumed responsiblity for the performance of your

contract with the previous owner(including the obligation to refund any desposits), it would appear that under the circumstances which you've described, that you would have a viable cause of action for breach of contract against this new owner if he fails to follow through on any of the aforementioned assumed obligations.

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Answered on 4/15/06, 2:05 pm


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