Contract, No Respond

SIGN FABRICATOR

I been in the sign business for a long time, until recently I became a license contractor. I always worked for a corporation and never had to deal with the contracts myself.

Here is my problem.

I got hire for a new sign for a store front. Customer and I came to an agreement with the price and sign the contract. I got a down payment for the 10% as the law requires but, now I get no respond from the customer.
He won't call back not answer my e-mails.

What should I do next?
Hopefully someone can help
Sign Fabricator

BuiltByMAC

Do you have a signed contract with their signature on it?
Does that contract state Payment Schedule and Work Schedule?
If yes, then you've got to do the work lined out in your contract before you get the next progress payment. If there is nothing stated that you have to do, you wait until you hear from your customer. You can send them a registered letter to prove that they are indeed alive.

If you don't have any of those details in your contract, it's any body's guess...

Work another job while waiting for their response. Your contract should state what conditions are valid if a HO delay prevents the job from starting on the contracted date, ie, you can push another job up if they delay so as not to be without work. They would then have to wait until that job finishes (or as soon as you can reasonably get back to their project.)

By the way - the law doesn't "require" you to get a 10% down payment, although some laws limit the amount of down payment you can ask for.

Mac

AtlanticWBConst

You need to consider the laws in your area & the wording of your contract.

Other than that, Mac's got the answer:

1.) Registered Letter.
2.) Set that deposit aside.
3.) The person could have expired or suffered a serious health accident/ailment (hospitalized).
4.) Keep trying to get in touch somehow, and keep records of your efforts.

__________________
- Build Well -

Stone Mountain

That has happened to me before. I had a very anxious couple give me a $250 deposit for a fence in MArch 2003. We never did put it in as they had problems with the neighbour, wife was pregnant, etc. March 2004, they call, they are almost ready.
Again, they couldn't put it together.
March 2005. I call them. Yes, they still want it. They will call when ready.
May 2008. Have never heard from them. I still have the money.

Just keep the money. If they want the job, they'll call.

__________________
Residential Deck Specialist: Vist our Website
www.fenceanddeck.ca

SIGN FABRICATOR

Hey guys,

I appreciate your advise. I guess I'm screw because the contract states that a progress payment should not be deliver until we get the city approvals.
If I don't get her approval, I can not proceed.
Unless there is any other way to go around it.

Thank you,
Sign Fabricator

stoner

Hi, in California it's not required to get a deposit but it's an option and only 10% of the total price, in my understanding the down payment it's kind of an insurance in case the homeoner changes their mind to cover any expense incurred by the contractor.

GregS

I don't understand your statement. Who's approval?

Are you out any expenses? Do you still want the job? Maybe just return the money.

Either way, just send them a registered letter asking them what's going on. You are out the $3 or whatever that costs.

Can you just drop by their place and find out?

Skydawggy

I would seriously sit down with an attorney and draw up a legally binding contract.

Some of the issues I would discuss are:

1. Is there a way to change the wording so that after the 3 day right of recission, the customer cannot get out of the contract unless approval from the city is actually denied?

2. The customer agrees to be cooperative in all aspects of the approval process.

3. Can a monetary penalty be assessed if the customer delays the process by not filing apppropriate paperwork in a timely manner?

4. Can you assess a cancellation penaly after a certain period of time? (Drop dead clause). Can you sue for all lost profit and/overhead costs caused by delay and/or cancellation?

5. A statement to the effect that the customer agrees to pay all of your legal fees if you decide to sue.

6. A statement to the effect that the customer agrees to waive any awards they may recieve even if they sue you and win.

7. (This one I really like) A statement that the customer agrees to waive all legal claims and rights they may assert against you. ( It means they agree to plead guilty if you sue them).

Not giving you legal advice, just some things to discuss with a competent attorney.

In the meantime, I'd go by in person and ask "whats up with our contract"?

SIGN FABRICATOR

Give me a brake man,

This is not about $3 dollars.

I just finish the drawings to start the approval process and this is the part when the customer is not returning my e-mails or phone call.
believe me this is not about money , this is more about getting educated and to learn how to do business better.

Skydawggy

Best way to get educated and learn how to do business better is to make it all about the money.

Chris G

That's funny. I sold a client a gift certificate for $300 a year and a half ago, (they wanted to give it to a friend for some handyman work). I had totally forgotten about until the recipient of the gift called me yesterday. I answered the call with a smile and said yep for sure I will fix your screen door, hang some pictures, etc...all the while thinking that I am going to be spending an afternoon working for free, even though I was paid for it 18 months ago

__________________
"Neek...Neek...yoo-a-moronna Neek. Getta-da-fookin-a-jacka-ham!"

http://www.vicporch.ca
Deck Fence Porch Builder Toronto

SIGN FABRICATOR

Hi Sky,

I guess the bottom line is to work on a better contract to make sure I cover all these areas you mentioned and more. I will invest my money on a better contract than going after this lady.

Thank You,
SIGN FABRICATOR

Trimcat

I'm not a lawyer, but I doubt this would fly. You can't enter into a contract that is in violation with the law or somebodies rights. Like I couldn't have you sign a contract that says it's OK to have me murder you. Contracts don't supersede the law. I doubt this wording would fly in a court of law. You can't sign somebodies rights away.

Skydawggy

I'm not an attorney either, but there is legal precedence for this. Try reading your credit card agreement or cell phone contract. You waive you right to sue and agree to abitration instead.

Ever read the contract for scuba diving, skydiving, downhill skiing etc? You waive your right to any monetary awards even if the operator has been found guilty of negligence. The courts have upheld this type of clause many, many times.

You aren't giving up your right to sue, you are simply agreeing that any monetary awards will go to the contractor.

As I've said before, I'm not giving legal advice, just some suggestions to discuss with an attorney who understands the contracting business.

Skydawggy

Sign Fabricator:

Here is the clause to discuss with an attorney:

"In the event that the amount agreed upon in this agreement is not paid when due, the Buyer authorizes an attorney to appear for him and confess judgement against said buyer for all amounts due hereunder, together with the costs of suit and attorney fees in the amount of 33 1/3%".

We rarely have to go to court to get our money but when we do, we never lose.

Trimcat

That's a totally different thing you've quoted there. That's saying if the buyer doesn't pay when due...... meaning the terms of the contract have been met..... then they agree up front to follow that course of action.... That's quite a bit different than " the customer agrees to waive all legal claims and rights they may assert against you."

They're not giving up any right to sue you if you DIDN'T meet the terms of the contract. Only if the terms of the contract have been met and it's payment time. Then it's pay up bitch or you're going to court, losing, and paying my attorney fees.

And that may be what you meant in your original post. I'm not trying to pick a bone. I guess this is why they have lawyers out there wording this stuff for us.

Trimcat

Oh.... as far as the scuba, skiing thing, I would say that if the operator is found guilty of gross negligence, and you suffer damages as a result of his negligence, I would say that whatever paper he had you sign is now toilet paper. You can't say "I can hurt you if I want and you can't sue me".
I'm pretty sure of that..... If you go out and slam into a tree skiing and break your nose, and there was no "gross negligence" on the part of the skiing operation, then that's a different issue. But, if an agent of the ski slope strung a wire across the trail, and you almost slice your head off, that piece of paper is meaningless.

Once again, I'm not a lawyer.

Skydawggy

I can assure you that having been personally involved in extreme sports for many years, you will be required to give up your right to sue to participate in many of those sports. Pick up the phone and call your local skydiving center, tell them you want to come down and make a jump and you will see I am correct. I can also assure you the "contract" has been tested in the courts before and the waiver has held up every time. The courts view is that nobody forced you to participate and after reading the clause you could have refused to sign and walk away but, chose to participate anyway. I have never heard of a waiver of a right to sue on a business contract being challenged so I can't tell you how a court might rule, but there is precedence.

As I mentioned before, read your cell phone or credit card agreement and you will see it states you are giving up your right to sue and agreeing to arbitration in the event of a dispute. You are also agreeing to whatever Arbitration Co. the provider chooses (which by the way is heavily subsidized by the provider and will rule in their favor 90% of the time). You have the right to say I'm not signing it and they have the right to refuse service if you don't. You don't have a right to have a credit card or cell phone.

Trimcat

Here's a really good article written by a lawyer on this very subject. In case you don't want to read the whole thing, here's a quote,

The important point to keep in mind, however, is that no waiver or release can protect you from claims of gross negligence.

http://www.bmezine.com/news/legal/20050227.html


A cell phone agreement laying out the terms of how you are going to pay for the service you agreed to and what will happen if you don't pay after using that service, and a waiver from a skydiving company that says "we can throw you out of the plane without a parachute on at any time and your estate can't sue us if we do" are two completely different things.

Skydawggy

I don't disagree that you cannot have someone waive their right to sue on a business contract due to gross negligence on the part of the contractor. Apparently I wasn't real clear on that before because I was simply responding to your statement of:

"Oh.... as far as the scuba, skiing thing, I would say that if the operator is found guilty of negligence, and you suffer damages as a result of his negligence, I would say that whatever paper he had you sign is now toilet paper. You can't say "I can hurt you if I want and you can't sue me".
I'm pretty sure of that..."

In which case you are absolutely incorrect. I was just giving an example of a case where you cannot sue for negligence. I am an FAA certified parachute rigger and if you want me to repair or repack your gear, I will have you sign an agreement not to sue and that even if you do and are awarded damages that you agree to forfiet those damages to me and pay my legal fees. Don't like it? Don't sign it. Find someone else. These type of agreements have been upheld in court many times.