Legal Question in Business Law in Illinois

Verbal Agreements, Deposits and Contracts

I recently spoke with a company regarding providing entertainment for a public event. I told the company I was very interested in them providing services for me. I was told that they would be sending a contract and I needed to sign it and return it with a $50 deposit.(Total event service fee $250) I never signed the contract or sent the deposit back. I did not call the company to tell them I would not need their services either. They showed up and found that I had canced the event and are demanding payment. I feel like I don't owe them anything because I didn't sign the contract. The contract says...This is a personal service contact and a written confirmation of our telephone agreement for entertainment entered into by both parties. The service provider feels we had a verbal agreement event though the contract was not signeed and I feel like we dont...what do you think?


Asked on 4/09/04, 2:55 pm

1 Answer from Attorneys

John Pembroke John J. Pembroke & Associates LLC

Re: Verbal Agreements, Deposits and Contracts

Based on only the facts in your question, when you spoke to the service provider and told them you needed services, that was an offer. Had they just shown up with nothing more, that would have been acceptance, and you would potentially be liable for contract damages. However, they counteroffered by requesting a deposit and a signed contract. This counteroffer, under basic contract law, rejected your first offer, and it was no longer on the table for them to accept. You did not accept their counteroffer, because you didn't sign and send back a deposit and contract. So you are off the hook, and they do not have a legal claim. Having said that, if it goes further and they sue you, you should consult an attorney to explore your rights in the circumstances.

Our comments are based on treating your question as a hypothetical. Accordingly, our comments could be substantially and materially different were we advised of all of the relevant facts and circumstances. Our comments are by necessity general in nature, and should not be relied upon in taking or forgoing action in your circumstances without retaining an attorney. In order to fully explore your legal matter, you should meet with us or another attorney and bring to any such meeting all relevant documents and correspondence, and any other relevant facts.

We are not hired to be your attorney, and no attorney-client relationship exists between us, unless and until you enter into a written retainer agreement with us, tender the agreed amount for a retainer and it is accepted by us. We reserve the right to decline representation should circumstances change.

As you are aware, in Illinois there are various deadlines for filing a complaint, filing an answer to a complaint, or taking other action in order to preserve your legal rights, and avoid a complete loss of those rights. You should retain counsel immediately in order to be fully advised of your rights, and to be fully informed of the applicable time period within which those rights must be asserted. If you were to delay in doing so, it might result in your potential cause of action being forever barred.

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Answered on 4/10/04, 10:21 am


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