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Contract Termination Letter

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  • #16
    Re: Contract Termination Letter

    Originally posted by GaryJR View Post
    That clause is so "layman" like it's not funny.
    Ditto.

    Get yourself a decent lawyer and have him write a real contract. Assuming the rest of your contract is written like that clause, make your best deal with this client and get out at any cost. Then don't do anything until you have a good contract :)

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    • #17
      Re: Contract Termination Letter

      Thanks Dick

      Comment


      • #18
        Re: Contract Termination Letter

        Originally posted by Dick Seibert View Post
        David:

        True, those words "Difficult Client" are very bad, they open the door for a value judgment that the owner can defend, there is also no consideration so the clause may be found to violate contract law. He should have a standard termination clause that gives both parties the right to cancel for cause, That's why I asked where he stood money-wise, contractors always write horrible one-sided contracts, there may also be other clauses voiding the entire contract.
        Perhaps, I am (well more than likely NOT perhaps - I'm kind of thick) ... but, wouldn't that contract also include a severability clause, thereby not nullifying the contract, in full?

        Or, more than likely, as I'm not the sharpest knife in the drawer, this counsel knoweth not from whence it speaks(?).

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        • #19
          Re: Contract Termination Letter

          Given the language of the one paragraph, I would not assume anything about the rest of the contract. No offense, Tim.

          We must remember that as contractors, it would be tough to argue anything in court with a poorly written contract :).

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          • #20
            Re: Contract Termination Letter

            Originally posted by dgbldr View Post
            We must remember that as contractors, it would be tough to argue anything in court with a poorly written contract :).
            And how does the saying go: "He who is his own lawyer has a fool for a client."

            It would be absurd to go to court without an attorney, yet we play one when we write our own contracts. Do lawyers laugh about diy attorneys as we laugh about diy h/o's?


            H/o: (About work he did on his house) "I did this myself, how does it it look?
            Contractor: Thinks to himself, "Ugh, this is awful."

            Contractor: (showing his contract to the attorney) "I did this myself, how does it it look?
            Attorney: Thinks to himself, "Ugh, this is awful."
            Tom

            "Whoever ceases to be a student has never been a student." George Iles

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            • #21
              Re: Contract Termination Letter

              Originally posted by tomthetoolman40 View Post
              And how does the saying go: "He who is his own lawyer has a fool for a client."
              Real story:
              I had a client who is a big-time lawyer. Gave him my contract to sign. He says "I'll have my lawyer look at it before I sign it". Then adds: You know, we lawyers DO have our own lawyers just like everyone else. Contracts are not my specialty.

              Smart cookie. I liked working for him.

              Comment


              • #22
                Re: Contract Termination Letter

                these comments are probably now after a deal has been struck, so are less relevant

                you will have a hard time prooving that a client is "difficult" just because he asks for change orders because building contracts allow for change orders / variations.

                suggesting that the client is "difficult" because he states up front that hes paying no addtional money for the change orders is also problematical, it can be viewed simply as him taking a tough negotiating position

                if i understand it correctly the homeowner is getting an engineer in at every stage, if you suggest that this makes him a "difficult client" also has problems for you. it is easily brushed aside because it can be viewed as a sensible precaution on the part of the client

                if one particular clause in a contract is difficult to persue (difficult client) you should seek another clause that is easier to enforce

                i note that the original contract was for 3 days and is now 7 (with delays) and probably isnt complete. is it possible under your jurisdiction to argue that the value and nature of the and value of change orders has substantially changed the nature of the original contract.

                i use an extreme example of a simple kitchen refit which, by the change orders, changes into building an extension to house a larger kitchen than was originally envisaged

                in this case you dont use the dodgy "difficult client" clause you use a more easily assembled case that says that the requested change orders are nothing directly to do with / could not have been reasonably envisaged by a contractor carrying out a kitchen fit contract?

                edit of course "reasonable" is just as subjective as "difficult client" and as always it depends on your jurisdiction as to the possibilty of raising such an arguement

                edit 2, have just looked back and notice that my thought process runs along similar lines to dick siebert (and others) getting a contract voided is pretty tough. avoiding warranty of works altered by the clinet should be easy enough
                Last edited by Tom Bainbridge; 11-10-2010, 04:00 AM.
                Limey Carpenter

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                • #23
                  Re: Contract Termination Letter

                  Let us know what happens. Sounds like the best argument is that the scope has changed significantly and client refuses to acknowledge it. Agreed that best solution is to get out of it ASAP - make sure he signs something saying you've both agreed to release each other (and of course have a lawyer draft that).

                  Was there a scope of work? Did client agree to it (ie was it part of the contract)?

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                  • #24
                    Re: Contract Termination Letter

                    I tried to meet with the guy twice Monday and once Tues, and he canceed both times. I ended up having to tell him over the phone, which was not my first choice. He agreed to the termination, but did not agrre with what was in the termination letter.
                    His argument was that the original opening in the contract was eleven feet wide and the opening now is nine feet, therefore I breached the contract, not him.

                    This is what I expected, and not the best route to take for him, as I have the updated plans drawn by his engineer showing the new opening size and the contract specifies an opening size of approx one hundred and nine inches. . When I brought this to his attention he just kept repeating, "The contract called for an eleven foot opening and you created a nine."

                    Comment


                    • #25
                      Re: Contract Termination Letter

                      When I brought this to his attention he just kept repeating, "The contract called for an eleven foot opening and you created a nine."

                      So, did you build it as 11', and then change it to 9'?

                      As others have said above, you need to get a release from this guy and walk away. There isn't enough money involved for lawyers in general, but the MAJOR concern would be any work he altered! How do you prove he changed it??

                      If he wants to call it breach, who cares? As long as you get a release, you're going to lose a day or so of labor, plus all the additional time spent trying to solve this!

                      If you have corrected plans, and you built to them, I don't doubt you could "win" in any action. Is it going to be worth it?
                      Take Care

                      Jim

                      Comment


                      • #26
                        Re: Contract Termination Letter

                        Originally posted by Jim
                        If he wants to call it breach, who cares? As long as you get a release, you're going to lose a day or so of labor, plus all the additional time spent trying to solve this!
                        Good point, let him call it what he wants, just get a release and get out.
                        "The only communists left in the world are in American Universities."

                        --Mikhail Gorbachev

                        Comment


                        • #27
                          Re: Contract Termination Letter

                          Originally posted by TimCon View Post
                          He agreed to the termination, but did not agrre with what was in the termination letter.
                          Sounds like no agreement has been reached. Have you talked to a lawyer yet?
                          Bailer Hill Construction, Inc. - Friday Harbor, WA
                          Website - Facebook

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                          • #28
                            Re: Contract Termination Letter

                            I just had a similar situation for the first time in my career. The one thing my attorney advised me that I will pass along to you is that you should have your client sign a "Hold Harmless" agreement releasing you from any liability for damages incurred by work done after your termination date.
                            Good Luck

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                            • #29
                              Re: Contract Termination Letter

                              I would hate to be in the position of bringing a hold harmless or any other document for client signature after the relationship has gone bad. There is just no reason for them to sign anything, and frankly if I were the client I wouldn't either, even being the eminently reasonable guy that I am. Everyone in this business needs to be using a contract that spells out how the contract can be terminated--along with dozens of other important things. If something happens on the job, you get the contract out of the filing cabinet to remind yourself of how the situation will be handled. If you're using a 12-point font and typical line spacing I would expect it to be 10 pages or so and cost you at least $2000 in legal fees to author. Dick has stated many times that an industry standard contract like AIA is an excellent choice and he's not wrong.

                              Get out there and hire lawyers, y'all!
                              Bailer Hill Construction, Inc. - Friday Harbor, WA
                              Website - Facebook

                              Comment


                              • #30
                                Re: Contract Termination Letter

                                David:

                                I agree and think the only incentive he can give the guy to get the release is to agree to walk away form all money owed.
                                "The only communists left in the world are in American Universities."

                                --Mikhail Gorbachev

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