Full question:
I'm in the process of building a house for a man on a cost plus basis. We only have a oral agreement on payment the job will exceed 300,000.00 dollars. I'm charging him 10%. I live in Texas and now I'm worried because I did not draw up contract but all monies to pay sub's are wrote to my company to disperse so I have a ledger of all my spent. If he refused to pay my 10% do I have a legal leg to stand on?
- Category: Contracts
- Date:
- State: Texas
Answer:
Even without a written contract, you may have legal options. In Texas, a person who benefits from another's work may be required to compensate that person under the principle of unjust enrichment. This means if your client refuses to pay the agreed 10%, they could be seen as unjustly enriched if they retain the benefits of your work.
Oral contracts can be enforceable, but proving their existence and terms can be challenging. Courts generally require evidence of the agreement and its terms, which can complicate claims based on oral contracts. Additionally, the statute of limitations for enforcing an oral contract is shorter than for written contracts, so timely action is important.
If you have a ledger showing your expenses and payments made on behalf of the project, this documentation can support your claim. Legal actions for breach of contract typically seek remedies such as money damages or restitution, which aims to return any benefits conferred to the other party.
For your situation, consider consulting a legal professional to discuss your specific circumstances and the best course of action.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.