Q: Can I be held to contract if it's underbid?
Independent sales person underbid a job, had customer sign our contract and collect deposit. I went out there to site survey it and realized the job was undersold and needed additional equipment and work that I'm not licensed to do. I'm an electrician, and they need stucco work for the job to be finished right. Customer refused to re-negotiate contract I refunded his deposit and told him to have a nice life. Now he is saying that if I don't do it for the price quoted, he is going to have it done by someone else and sue me in small claims court for the difference. Does he have a case? Also there is an arbitration clause in the contract. If he tries to take me to small claims, can it be dismissed for improper venue?
A: Yes, he has a case, but you may have a defense. You are responsible for the contracts that your agents negotiate. But from what you say you may have the defense of Impossibility of performance, if you do not have the license to perform the job. You might also want to be sure that the contract is not complete until YOU sign it, so you have the opportunity to catch these problems before you are bound by contract.
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