Legal Question in Business Law in California

Re: Flooring Industry

In a word . . . YES!!! to both questions!

Re: Flooring Industry

in a nutshell, a WRITTEN contract is the best way to ensure your rights are protected now and in the future, especially in unexpected things arise or simply one party breaches an oral agreement or fails to remember a key provision. thus, being in business, you definitely should have a contract drafted and/or reviewed to ensure your rights are protected and no misunderstandings may develop down the road that could cost you work, delays, income or damages.

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Re: Flooring Industry

Here are some legal principles to keep in mind. One or more of them may be helpful.

First, a contract for the sale of goods for $500 or more is not enforceable unless it is in writing and signed by the person against whom it is to be enforced. Sales contracts under $500 can generally be entirely oral. Most lawyers recommend putting any contract of sale in writing except for those "over-the-counter" cash-and-carry transactions at the hardware store, etc.

See Commercial Code section 2201 for details, of which there are many.

Second, keep in mind the distinction between a contract and an offer or quotation. You may have had a quotation or offer from the supplier, rather than a contract. You are in contract with a supplier when he is obligated to supply your material at a given price AND you are obligated to buy. Frequently, contractors get quotes from vendors and subcontractors so they can put together their bids to owners. Such quotes are not contracts because you, the contractor, are not obligated to buy. Contracts always involve two-way obligations (at least before performance begins).

Finally, there is a requirement in the California Commercial Code, see section 2205(b) under the heading "Firm Offers," making certain quotes given by suppliers to licensed contractors irrevocable for a period of time. The purpose is to prevent suppliers from "jerking the rug out from under" contractors who have made bids in reliance upon a quotation from a supplier.

I hope this helps.