Albuquerque, NM asked in Contracts, Banking and Construction 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: When a bid for a painting job is accepted and payment is made, the expectation is that the funds will be used as agreed upon - to cover expenses related to the job, such as purchasing the right equipment and materials necessary to complete the work. Misappropriating these funds, especially for personal uses unrelated to the job like bail, breaches the trust between the client and your business. It's not only unethical but could also be considered illegal, depending on the specifics of your agreement and local laws.

The legality of this action hinges on the terms of the contract and the intended use of the funds as specified in the proposal. If the funds were explicitly for job-related expenses and your associate used them otherwise, it could be seen as misappropriation or fraud. These are serious accusations that carry legal implications.

In situations like this, it's crucial to address the issue directly and seek to rectify the situation, potentially by returning the misused funds or ensuring the job is completed as promised. If resolving the matter internally is not possible, seeking legal advice is a prudent next step. A legal professional can provide guidance on how to proceed, whether it involves civil action to recover the funds or other measures to address the breach of contract.

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