I am a licensed contractor in PA. In November, I contracted a small job for the sum of $1,270. I originally sent prices out via email, then a contract was submitted shortly after via PDF file.

As a good faith courtesy, I started the work without the customer signing the contract (he was at his work while I worked in his home, so he was not at the job site, enabling me to get his authorized signature). On day 3, he gave me a deposit of $500 cash towards the work. I still did not receive the customers signature, however, I continued to working on a good faith email price.

On day six, we had conflict via phone conversation. There was additional work that he was trying to get me to include for free. At this point in time, I requested him to sign the contract before I continued the work. He stated, “I am not signing your contract”! I told him, “without your signature, I will refuse services until I receive the signed contract.” So I packed my equipment in the truck, and I left his home.

Later that evening, I sent him an email stating, “because of your refusal to sign my contract, I now need a payment of $450 and the contract signed for me to resume work. He stated via email, that he will have $450 on the kitchen counter when I arrive in the morning.

So I went to his home and collected the $450, but there was no sign of the written contract, with his signature. I immediately called him at his job to ask why he did not sign the contract. He proceeded to talked around the subject, so frustrated, I took the $450, and called it even.

When I got home, I send him an email stating, “I will not be completing the work and that he can get someone else to finish the job. I also stated that I feel that we are and an even point to dissolve the relationship.

Later this week, I received a notice from the courts that he was suing me in small claims court, for the sum of $450. According to my itemized pricing, I honestly did $950 worth of work and that is exactly what he paid me for so far.

The way I see it, he continually refused to sign my contract, so I refused to continue the work.

What do you folks think of this situation? Do you think that I am in the wrong in anyway? How do you think a judge will handle this case?

BTW - there is much more detail to this case than I have time to write!

Hello S:

Just tell the court what you told us, and I think you'll win.

excon

Tell the courts and I agree, you should win, or you can also counter sue for the additional work you did if you want.

1. he agreed verbally to the work. ( large amount of contractors never use written)
2. he paid money
3. you started work.

Issues, you started work without contract, and he was paying
You should have never started without a signed contract, if you use them. Or had him sign and scan and email it over.

Also if his email agreed to the contract, that may satisfy the signed contract, since electronic signing by agreement online has been upheld at times.

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Originally Posted by Fr_Chuck

Tell the courts and I agree, you should win, or you can also counter sue for the additional work you did if you want.

1. he agreed verbally to the work. ( large amount of contractors never use written)

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I don't think it's a good policy to have a verbally agreement. It leaves both parties open for misunderstandings with "I thought this" and "I thought that" situations potentially occurring!

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Originally Posted by Fr_Chuck

Issues, you started work without contract, and he was paying
you should have never started without a signed contract, if you use them. or had him sign and and scan and email it over.

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This is one of my emails to him: "Please read over the revised contract and have it signed no later than at my arrival tomorrow morning. If you have the ability to sign, scan and send it back to me via email, I would greatly appreciate that as well."

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Originally Posted by Fr_Chuck

Also if his email agreed to the contract, that may satisfy the signed contract, since electronic signing by agreement online has been upheld at times.

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My email quote to him was vague and the contract was more detailed. And in the end, he tried to get me to do additional work for free...

He sent me a text this evening stating, "I want you to finish the job this week. "if not, I will see you in court"!

Fight it in court, I would counter sue for all my costs if it was me.

And use it as a lesson learned, if you use contacts, tell them, I will start only after it is signed, and don't start without one.

Chuck, I am most likely going to file a counter suit.
Commenting on your first post - whether verbal agreements or email agreements hold up in court, having a signed contract gives me much piece of mind...

Funny, after I walked off the job on Dec 5th, the customer finally signed the contract and used it in his small claims complaint. So the contract is now signed and was sent to me from the courts. Unbelievable!

To this day, he never directly sent me a copy of the signed contract.

How a judge might handle this (keeping in mind that small claims is fast and short):
You will be ordered to finish the job as specified on the contract and he will be ordered to pay you $320, and he will not recover his court cost (about $50 in many states).
The judge isn't going to care that he didn't sign the contract until he filed because there is no proof of when it was signed, and it was your job to do no work until it was signed. 'Good faith' won't hold any weight in court.
Just my guess. Small claims judges have a lot of leeway for arbitrary decisions.

I think you are making too much about the issue of a signed contract. Whether it's signed or not, as you note, only really matters if there is a disagreement as to the terms.

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Originally Posted by AK lawyer

I think you are making too much about the issue of a signed contract. Whether it's signed or not, as you note, only really matters if there is a disagreement as to the terms.

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I agree with AK here. A contract DID exist based on the fact that he paid money and you started work. The fact that you sent a contract whether he signed it or not would only come into play if he claimed that you dd not do work contracted for.

So my take is that you may not have been within your rights to stop work only on the basis of the unsigned contract. I think joy is right in how a Small Claims court will handle it. So what I would do, is tell him you will complete the job if he pays you the balance in advance and drops the suit.

Hello again, S:

To bolster the arguments you've heard, I sued a former associate. We WERE in business together, but she NEVER signed the agreement. Like you, I went ahead based on good faith. Also, like you, I got screwed..

When I won, the judge ruled that if, by the participants CONDUCT, it LOOKED like an arrangement had been made, then it doesn't matter whether a formal agreement was signed, because ACTIONS tell the truth.

The same thing will happen in your case.

excon

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Originally Posted by AK lawyer

I think you are making too much about the issue of a signed contract. Whether it's signed or not, as you note, only really matters if there is a disagreement as to the terms.

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There was extra work that he tried to get me to throw in for free, that is when I got leery and requested him to sign the contract.

Contract states: KITCHEN: prime over existing paper, install wallcovering - $430

Customer writes: A payment of $450.00 will be sitting on my kitchen counter for you today on December 5, 2012. I expect you to finish the complete job by Friday, December 7, 2012, which includes the removal of all tile on the walls in the kitchen plus wallpapering. The remaining balance of $320.00 will be paid upon completion of the job. I want you to use the last roll of the wallpaper to finish the wall opposite my kitchen window. Substantial progress must be made everyday so that the job is finished on Friday.

Highlighted in red was not on the contract.

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Originally Posted by joypulv

How a judge might handle this (keeping in mind that small claims is fast and short):
You will be ordered to finish the job as specified on the contract and he will be ordered to pay you $320, and he will not recover his court cost (about $50 in many states).
The judge isn't going to care that he didn't sign the contract til he filed because there is no proof of when it was signed, and it was your job to do no work til it was signed. 'Good faith' won't hold any weight in court.
Just my guess. Small claims judges have a lot of leeway for arbitrary decisions.

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Yes, I have an email from the customer dated Dec 06, 2012 which provides proof that is signed the contract after the fact.

Customer writes: "Your contract was signed last night by me, and this contract is law abiding in a court of law. It does not include the payment that was received by you today in the amount of $450.00 on December 5, 2012. We are at an impasse now, so I am going to file a grievance against you in the Judiciary Court."

You can make a case that the customer tried to change the terms of the job. But I think you will lose if you try to claim a contract didn't exist.

Scottgem, I am not denying that a contract existed. My argument was that he refused to sign it per my numerous requests..

These are the terms on the contract that were not in the email pricing.

TERMS AND CONDITIONS

A) ACCESS TO THE JOB SITE:
Customer agrees and understands that access to the jobsite must be provided between 8 a.m. and 5 p.m. Monday through Friday, for the duration of this job.

B) EXTRA COSTS/CHANGE ORDERS:
1. This contract may only be changed in writing. Additional work performed to be an extra charge, above the Total Price stated within the scope of this agreement. Additional work to be approved by Customer prior to commencing, by signature, on a Change Order Form.

C) INSPECTION OF COMPLETED WORK:
Upon substantial completion of work, the Customer agrees to conduct an inspection of the work with the Contractor. All defects and uncompleted items should be noted at this time. The inspection must occur under normal lighting conditions, without magnification, and from a normal viewing position, in accordance industry Standards.

You are hiring an experienced, professional painting and wallcovering company. Elements of the job will meet or exceed normal accepted practices in the painting and wallcovering industry.

Customer has read, understands, and agrees with the total payment schedule and terms and conditions as shown in this agreement.

In accordance with above stated agreement, we do hereby agree to terms as outlined, and authorize contractor to commence work.

Here is the full contract withholding names:

CONTRACT FOR PROFESSIONAL SERVICES

AREAS COVERED IN THIS AGREEMENT: bathroom & closet, kitchen and dining room.

- DINING ROOM: prime over existing paper, install wallcovering - $260

- KITCHEN: prime over existing paper, install wallcovering - $430

- BATHROOM & CLOSET: remove paper, prime walls, install wallcovering - $580

PREP WORK: spackle & sand, minor imperfections as needed.

PRIMING: apply Kilz primer to all surfaces under scope of work.

CONTRACTOR AGREES TO PROVIDE ALL LABOR, SUPPLIES, AND EQUIPMENT (UNLESS OTHERWISE SPECIFIED IN THIS AGREEMENT) TO COMPLETE THE WORK DESCRIBED IN THIS AGREEMENT.

TOTAL PRICE: $1,270

START DATE: 11-26-12

PAYMENT SCHEDULE: A DEPOSIT OF $500 AT START OF WORK and,
REMAINING BALANCE DUE BY THE END OF BUSINESS ON THE DAY OF COMPLETION: $770 OR
IF THERE IS NOT ENOUGH PAPER TO COMPLETE WORK, A PAYMENT OF $700 SHALL BE PAID UPON WALLPAPER SUPPLIES BEING EXHAUSTED
IF A RETURN SERVICE IS REQUIRED TO FINISH WORK, A SERVICE FEE OF $50.00 SHALL APPLY PLUS REMAINING BALANCE OF $70.00 SHALL BE PAID UPON FULL COMPLETION TOTALING: $120




__________________________________
Customer/Agent Date



TERMS AND CONDITIONS

A) ACCESS TO THE JOB SITE:
Customer agrees and understands that access to the jobsite must be provided between 8 a.m. and 5 p.m. Monday through Friday, for the duration of this job.

B) EXTRA COSTS/CHANGE ORDERS:
1. This contract may only be changed in writing. Additional work performed to be an extra charge, above the Total Price stated within the scope of this agreement. Additional work to be approved by Customer prior to commencing, by signature, on a Change Order Form.

C) INSPECTION OF COMPLETED WORK:
Upon substantial completion of work, the Customer agrees to conduct an inspection of the work with the Contractor. All defects and uncompleted items should be noted at this time. The inspection must occur under normal lighting conditions, without magnification, and from a normal viewing position, in accordance industry Standards.

You are hiring an experienced, professional painting and wallcovering company. Elements of the job will meet or exceed normal accepted practices in the painting and wallcovering industry.

Customer has read, understands, and agrees with the total payment schedule and terms and conditions as shown in this agreement.

In accordance with above stated agreement, we do hereby agree to terms as outlined, and authorize contractor to commence work.

I think you'll win, but be prepared. Bring all the paperwork, even if it wasn't signed, all the emails, everything you have that's in writing, and then tell your side.

He's the one suing, so he has the burden of proof to show that you were negligent, and that you owe him. If you can prove that you did the work you were paid for, then I can't see any reason why you wouldn't win.

He's bullying you so you'll complete the job, and give him all the extras he asked for for free. Take your chances in court, I doubt you'll lose if what you've posted here is the truth.

Good luck.

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Originally Posted by Superfedz

Scottgem, I am not denying that a contract existed. My argument was that he refused to sign it per my numerous requests..

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You are missing the point. It really doesn't matter that he didn't sign the contract. The law doesn't require it. As soon as he gave payment he accepted the contract terms you provded. Signing it is immaterial.

What is the suit for? Is he suing you because you didn't complete the job? Then you will lose because you didn't. What will you lose? Nothing. You will have to complete the job as the contract specifies and he will have to pay the balance as the contract specifies. The only way you lose anything is if the judge decides you did not have a valid reason to not complete the job. I would hang my hat on his trying to add to what was contracted for, not that he didn't sign the contract.

Do you see the difference? Again the wording in the suit may be a key factor here. But the problem is you keep harping on the fact that he didn't sign the contract. There was no need to post the terms, we believe you that he was asking for more. You are trying to convince us when you should be working on convincing a judge and that's what we are trying to advise you to do. Unless you do what I suggested. Offer to complete the job as contracted for.

All emails sent to the customer, that I will bring to court.

December 3rd

This is what I need before resuming work:

1. Please sign the contract (contract is attached with my signature)
2. Please pay for all work that has been performed in the sum of: $450.00 on by the morning of 12-04-12
3. A change order will be drawn up and signed before I commence work under the kitchen cabinets.
4. Your mother has to understand that the contract is between you and I, and any issues that arise, need to be addressed by your and I ONLY!

Please let me know that you comply with the above and I will see you in the morning.


December 4th:

Please read over the revised contract and have it signed no later than at my arrival tomorrow morning.
If you have the ability to sign, scan and send it back to me via email, I would greatly appreciate that as well.

Thanks,

December 4th:

This is what I need to complete your project;

1. please sign the contract and return it to me via email
2. make an immediate payment in the sum of $450 to my PayPal account or,
3. mail the payment in to my address which is on my contract letterhead

When all the paper work and payments have been received, I will then reschedule the work.

I do want to complete your project, however, I need you to make a good faith effort and comply with my requests.

Final email after return from his house on Dec5th

I feel that we are at a fair point to call it even. I am not going to complete the work for the following reasons;

1. per my numerous requests, you refused to sign my contract
2. you expect me to do additional work, 'over and above the original agreement' for free

I wish you the best of luck with your project!

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Originally Posted by ScottGem

You are missing the point. It really doesn't matter that he didn't sign the contract. The law doesn't require it. As soon as he gave payment he accepted the contract terms you provded. Signing it is immaterial.

What is the suit for? Is he suing you because you didn't complete the job? Then you will lose because you didn't. What will you lose? Nothing. you will have to complete the job as the contract specifies and he will have to pay the balance as the contract specifies. The only way you lose anything is if the judge decides you did not have a valid reason to not complete the job. I would hang my hat on his trying to add to what was contracted for, not that he didn't sign the contract.

Do you see the difference? Again the wording in the suit may be a key factor here. But the problem is you keep harping on the fact that he didn't sign the contract. There was no need to post the terms, we believe you that he was asking for more. You are trying to convince us when you should be working on convincing a judge and that's what we are trying to advise you to do. Unless you do what I suggested. Offer to complete the job as contracted for.

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Hey wants $450 back for completed work. We are at an even point in terms of completed work vs. payments.

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Originally Posted by ScottGem

But the problem is you keep harping on the fact that he didn't sign the contract.

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That is the reason I left. I saw a red flag when he refused to sign the contract which made me unconformable to finish.

The contract comes from the PDCA which is an organization that holds the Industry standards. (I shorted the PDCA contract, to the basics, trying to make him feel more comfortable).

I have never has a customer refuse to sign this contract!

Also, as stated earlier, he tried to get additional work thrown in for free, which caused me to demand his signature to complete the work.

Also, I never mentioned, since he was not home during the work, he had his mother house sitting. His mother started this mess by demanding that I do the additional work. She stated, "If you don't listen to me, we don't need you"!

She was totally ignorant to what was in the agreement. And this was the turning point, which made me demand the contract be signed.