West Fargo, ND asked in Business Law and Contracts for North Dakota

Q: Can a prime contractor legally withhold money from 1 completed contract to compensate for a separate job contract?

A contractor holding overdue retainage from a completed bonded project contract in an attempt to use the money toward what they call promissory estoppel on another project quote, the other project did not have a signed PO due to engineering firm not approving the proposed product, I believe the prime contractor would have to satisfy each contract individually, is that correct?

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1 Lawyer Answer
Lucas Wynne
Lucas Wynne
  • St. Louis Park, MN
  • Licensed in North Dakota

A: This sounds like a law school contracts question. Unfortunately, no attorney can confidently answer this one without actually seeing the contracts.

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