Albuquerque, NM asked in Contracts, Banking, Construction Law and Business Law for Colorado

Q: I wrote out a painting bid proposal sheet and gave an estimate for preformed. The bid asked for half pay

To start upon acceptance of bid. They called my business associate and said they accepted the proposal he then went down and got a check from the bank that wrote and signed the proposal for. He took the money and for the wro.g equipment for the job and pelht the rest of his money towards his bail. Is this legal to do . ?

1 Lawyer Answer
James L. Arrasmith
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  • Construction Law Lawyer
  • Sacramento, CA

A: In the situation you've described, where a business associate accepted a payment on behalf of your business for a painting job and then misused those funds, several legal and ethical issues are at play. Once a bid is accepted and a payment is made, the funds should be used as agreed upon in the contract or proposal, typically to cover expenses related to the job, such as purchasing supplies or equipment necessary to complete the work. Using the payment for unrelated personal expenses, such as bail, without the agreement of all parties involved, is not in line with the intended purpose of the payment and can be considered a breach of trust and contract.

If your associate took the money, purchased the wrong equipment, and then diverted the rest of the funds for personal use, this could potentially be seen as misappropriation of funds or even fraud, depending on the details of your agreement and the expectations set forth in the proposal. The legality of the situation would depend on the specific terms of the contract, the understanding between the parties involved, and the local laws governing contracts and business transactions.

To address this issue, it may be necessary to speak with your associate about rectifying the situation by returning the funds or completing the job as promised. If an amicable resolution cannot be reached, consulting with a legal professional to understand your options for recovering the funds or enforcing the contract may be your next step. This could include civil litigation to recover the misused funds or to seek damages for any harm caused to your business reputation or financial standing due to the misappropriation of the payment.

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