Legal Question in Construction Law in North Carolina

Date of completion not honored.

I signed a contract on a detached garage on Aug. 18th. The builder verbally told me that he would be finished in mid October. However, the framing wasn't completed until Dec. 22. On Dec. 21 the builder called and told me he was leaving for Paris, France on Dec 24 and would return on Jan. 22. I have given him two draws on the job(about $19000) with the remainder due at completion(about $8500). Can I terminate the contract while he is overseas and complete the job myself? Or can I only pay part of what is owed?Thanks for any help that you can offer.


Asked on 1/01/02, 10:17 pm

1 Answer from Attorneys

John Kirby Law Offices of John M. Kirby

Re: Date of completion not honored.

We probably need more facts to give an accurate answer to this (i.e. when were the oral statements made; did you rely on that statement); also, I'm open to other thoughts on this matter. My initial thinking is that the oral (I prefer "oral" to "verbal") statements as to date of completion are binding. This does, however, raise some issue as to the "parol evidence rule," which in some circumstances precludes the admission of statements outside of the written contract itself. One generally cannot contradict the written terms by an oral statement, but under the facts you have presented the oral statement as to date of completion should be admissible and binding. The second "technical" issue is whether the date of completion was a "material" term. As a general matter, the breach of a "trivial" contractual term does not render that party in breach, allowing the other party to terminate the contract. My inference, however, from your question is that the date was a "material" term (evidenced in part by your specific inquiry about that matter). (In a related vein, if the statement was made after the written contract was entered, it is less likely to be binding. At a minimum, the builder could raise the "defense" of lack of "consideration.") Assuming, however, that the oral statement was a part of the contract, and that it was a "material" term, then the builder is in breach allowing you to terminate the contract and, if appropriate, sue for resulting damages. I cannot discern from your question whether he has done more than $19K of work. If so, then you could hire someone to finish the job, and sue him for your damages (but you may need some luck collecting). If not, then you can hire someone else and pay him for his work. It should also be noted that there may be several other "factors" which could affect your right to terminate the contract. Your case is strengthened if, from the outset and throughout the process, you notified the builder of the importance of the deadline. The builder's case is strengthened if he has some "excuse," such as bad weather (which is an unlikely defense at this time). As a final note to complicate matters, there also may be a claim for an "unfair and deceptive trade practice," especially if the builder enticed you into the contract with a deadline he knew he could not meet, or if he misled you along the way. There are a few ramifications of this potential claim: (1) if you prevailed, you could recover treble damages and attorneys fees, (2) if the breach of contract claim fails for some reason (e.g. parol evidence rule), then this claim might prevail, and (3) as a practical matter is gives you more leverage. Speaking of the "practicalities," these matters are usually best resolved on practical considerations, rather than legal ones (e.g. can you collect a judgment, how critical would a one month delay be, is there any ongoing relationship with this individual, do you have another competent contractor available).

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Answered on 1/01/02, 11:27 pm


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