Q: Im a contractor I have a contract with a homeowner, they want to cancel the contract how do we go about doing so?
The paper work for permits took longer then expected, there was a change order, and a deposit was put down from the homeowner. They want to cancel the contract and an itemized list of what was spent.
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A:
I would start with your original contract. If contains procedure on how to cancel the contract, then you may be able to use that.
If not, then you may wish to sit-down with the homeowner and negotiate a settlement agreement/ termination agreement. In short, you would both be agreeing to terminate the contract in exchange for something. You may wish to work out the broad terms by yourself, but you should have an attorney write everything up for you at the very least.
Then litigation is always an option depending on who breached the contract.
A large portion of contract law depends on the contract itself. You need to have an attorney review the contract prior to making any decisions.
Please be aware that this is not legal advice. This is generic information intended to help the reader develop questions to ask an attorney when they are ready. Each case is different. Anyone reading this answer in need of legal advice should contact an attorney. Larranaga Law offers free case evaluation. Please note that representation is not guaranteed.
Sincerely,
Michael Larranaga
Larranaga Law
Website: www.larranagalaw.com
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