Customer Cancels A Contract...what Are Their Rights?

Easy_rhyno

I was hired as a private guy for some "side work" with a customer. We did sign an agreement and a deposit was made. The initial deposit went 1/2 to the mason on the job for his materials and the other half into my business account for my materials, etc.

The job sat for about a month before work started due to the customer putting off getting the space cleared out. Then the work began. On the third day of the job the home owner approached me and told me that she wanted to cancel the contract because she had no faith in the mason because when she asked him if he had bought the material for the job he bluntly told her "no, not yet." and that he was waiting to get money from another job where he had money coming because the downpayment from her was gone on living costs. So needless to say she was shaken and upset and fired us both off of the job.

All told I had about 20 hours of labor into the job, plus gas costs, some minor material costs, my laborer costs,etc. I told her that I would be happy to take out a fair amount and refund her the balance. She told me that she wanted a set amount returned and that if I didn't agree to give it to her she would call the police on me.

Then I find out that she is allowing the mason to work his downpayment off, even though that money he was given is legally my responsibiliby as I was the one who signed the contract, not him. And even though he was in the wrong, he gets to stay on and finish to work off his amount, I have to pay back my half wich is fine, as long as it's minus what I should have coming for the work I did.

What are my legal rights? Should I contact a lawyer? What are her rights? Is this a civil case if we cannot agree on the amount to be returned? Is it criminal? What would the cops do? I've never ran into this before in the 15 years I've been in business so I am clueless. The job is in Wisconsin. Any help would be greatly appreciated.

Ed the Roofer

Civil Case either regarding an amicable parting of the ways agreement from all 3 parties or at least between you and her, or contact an attorney and sue for the lost profit and time expended to date.

That is not a legitimate reason to void a contract. Many contractors unfortunately have to use other peoples deposit money to pay their bills.

Ed

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Celtic

What does your contract state about defaulting, cancellations, etc?

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Easy_rhyno

I don't have anything listed about cancellations. I've never had this problem. I will from now on though.

I guess I just need to know if this is a criminal thing or civil. What's the worst case scenario? Do I end up in court to fight for my fair wage or do I have to pay her back in full and then sue her? I really hate going through this crap, makes me ill to my stomach. I just don't need some cop knocking on my door for something that is so silly. I'm not saying she doesn't deserve a refund, just not as much as she wants. Don't I have a right to get paid for what I have done?

Tscarborough

First, beat your mason about the head and shoulders with a 2x4 for opening his pie-hole. Second, until you fail to perform per contract, she can suck eggs. Last, but not least, beat your mason about the head and shoulders with a 2x4 for being a dumbass, and then lose his phone number.

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neolitic

He has not learned that the truth
does not always set you free.

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GregS

So who was the mason contracted to? You or her?

If you, then it sounds like he made a side deal around you circumventing the contract he had with you.. which would presumably make him in breach of contract.

So if he hasn't spent any money on materials or labour under your contract, then he owes you the money you gave him.

If you took deposit money with a signed contract and then started the job, then I fail to see where you did anything criminal and why the police would be involved.

Document your costs to date, buy an hour of time with your lawyer to make sure all is good, and then send it to her.

wyoming 1

again not a lawyer but she has to prove that you took the money without any intention of doing the work for it to be criminal. My personal thought you picked a fly by night mason who cut your throat to the ho and cut you out of your %

DavidC

I'm going to step away from the crowd on this one.

Beat that mason with a 4x6. He is the real problem.

I would tell the customer not to worry because I will make certain the materials are here on time and the job will go along as planned. If you can get her calmed down the issue may just resolve itself and you can go back to work.

If need be you can order the materials yourself and deduct the cost form your mason's subcontract. Should you use this guy again I would put him on labor only, paid when done contract. You will need to add a roll of duct tape to your costs to keep his mouth shut.

Good Luck
Dave

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boman47k

What does that mean?
I'm confused. Sounds like the mason might have been hired as a private guy for some sidework too.

SalesMGR1011

My thoughts by reading the op is that he normally works for someone else and is doing a little moonlighting on the side.

Ed the Roofer

My thoughts are that he is an unlicensed contractor, either full or part time moonlighting, and wants to run the business "Under The Radar", and did not want to have a paper trail by having no written contract.

Even if he is a licensed contractor, the hole got dug by not having the agreement in writing and signed by both parties.

Lesson learned. Do it better the next time. If we all learn by our mistakes, someday we will all be in the genius category.

Ed

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boman47k

I may have been thrown off by sidework being in quotes.

Celtic

???

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CBG

rhyno...I'm gonna up the ante. Beat the mason with a 6x6 !!! He has no right to discuss anything more than the weather with YOUR customer. Moreover, your customers contract is with you. Regardless what the mason claims to have done with his portion of the downpayment, contract fulfillment is between you and the HO, period. Secondly, drop your mason. If he's gonna double-deal with the homeowner behind your back, I don't care if he makes diamonds out of dimes, he can't be trusted. If you can't trust your subs, you can't do business with them. In the future I would suggest using sub-contractor agreements. Keep 'em simple; if only to outline the scope of work, the agreed upon price, and your expectations with regard to workmanship, client contact, etc.

Ed the Roofer

My mistake. I didn't remember that due to other comments from other posters along those lines.

OP, excuse me.

Ed

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Celtic

...me thinks you may be right on the other point

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Easy_rhyno

I am a state licensed contractor and fully insured. I did this one on the side because they asked me for a discount of it was a cash job. That's what I meant by it!!

Easy_rhyno

Super well said!