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Below is a list of the most common customer questions. If you can’t find an answer to your question, please don’t hesitate to reach out to us.
Oral contracts are valid. However, absent a written contract, if a contractor can prove the existence of an oral contract, and if all other requirements are met, the contractor will retain its lien rights. Working Without a Contract Can Be Dangerous. There is another concept known as a contract implied in law.
First, you can sue your contractor for breach of contract, even without a written contract, and she can sue you as well. See Solo's article, “Breach of Contract Cases in Small Claims Court,” for more on this. However, an alleged oral contract does create difficult evidentiary questions for the judge.
Failure to Pay If a contractor does the work promised, you can't refuse to pay him based on the idea that, because no written contract exists, you lack a legal obligation to do so. However, the situation becomes complicated if you lack a written contract and there is dispute.
Suing for Money Owed Without a Contract Just watch an episode of People's Court or Judge Judy, and you'll see that, yes, you can sue over a verbal agreement. If someone breached their verbal agreement with you, and you want your money back, get legal help you can trust.
States where the lien law doesn't require a written contract. In these states, contractors and suppliers are generally allowed to file a lien even if they don't have a written contract. These states typically permit parties with verbal, oral, or even implied contracts to claim lien rights.
Breach. You must show that the party you plan to sue failed to meet his or her contractual obligations (“breach of contract” in legalese). This is usually the heart of the case -- you'll need to prove that the contractor failed to do agreed-on work or did work of unacceptably poor quality. Damages.
For every independent contractor who works for your company, you should have a copy of a contract on file, signed by both parties. It may sound like overkill to require you to have a contract for each independent contractor relationship, but some agreements need to be put in writing.
United States, 353 F. 2d 216, 218 (1965). Plainly, such a contract does not by itself mean the worker is really an independent contractor, but the lack of a written contract will make employee status much more likely. Furthermore, your client may even have a dispute with the worker directly.
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