Baltimore, MD asked in Business Law and Contracts for Maryland

Q: In Maryland, is a contract with a contractor valid if both parties have not signed it?

The contract is for repairs to my home.

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1 Lawyer Answer

A: If no work has been performed or materuials ordered, then you can cancel and disavow the contract without penalty. If you've paid the initial deposit, and the contractor has commenced work or ordered materials, then you have partial performance and either side can argue the contract has been accepted and is binding even without a signature. If you made verbal agreement or via email or text or other form of communcation that signified you had acceted the terms of the contract, and that the contractor was hired, then that is probably sufficient to create a binding contract even without signature. However, if the contractor has done nothing toward performance of the contract, and has not changed his position following your acceptance, then it will be much easier to withdraw your acceptance and cancel the contract. A "change in position" can be the ordering of materials and hiring of subcontractors to commence work under the contract, or actually showing up and performing work. A contractor might also claim a change in position if he turned down other jobs because he had already committed to perform your job, and therefore is now out of pocket.

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