Legal Question in Construction Law in California


What right do I have to cancel a signed quote for asphalt/paving job? I called and told the company I wanted to cancel our agreement because I couldn't afford it and now they are taking me to small claims court for their lost profit. I didn't even give them a down payment.

Asked on 4/15/09, 6:18 pm

1 Answer from Attorneys

David Gibbs The Gibbs Law Firm, APC

Re: Asphalt/Paving

You should have someone review the contract you sign. In some cases, the contracts become effective upon execution by both parties (signed). Others, however, do not become effective until a deposit is received, or some other event happens after the agreement has been signed. Odds are pretty good you will end up with some sort of liability towards them for breach of contract. Lesson learned - never sign a contract unless you are intending to perform under the terms of that agreement. A contract is generally a legally binding agreement. Do also have the agreement reviewed to be sure it is actually a contract, and not just a bid quote. Finally, look for something in the agreement about liquidated damages - he might have agreed to accept some fixed amount other than his lost profits. Good luck.

*Due to the limitations of the LawGuru Forums, The Gibbs Law Firm, APC's (the "Firm") participation in responding to questions posted herein does not constitute legal advice, nor legal representation of the person or entity posting a question. No Attorney/Client relationship is or shall be construed to be created hereby. The information provided is general and requires that the poster obtain specific legal advice from an attorney. The poster shall not rely upon the information provided herein as legal advice nor as the basis for making any decisions of legal consequence.

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Answered on 4/15/09, 6:28 pm

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