My husband made an oral agreement with a friend to transform his garage into a work space, in two days time. While my husband is fully licensed and insured in NYS to operate his own construction firm, since June of this year, he was taken for a ride by a former friend, after charging a fifth of what any other contractor would charge. If payment is not received, does oral agreement stand firm? If not paid by the employer in several weeks time, can the contractor apply late fees and finance charges under Tioga County laws? Can I, as his wife, who is also covered under his insurance policy, appoint myself with my husband's permission, as personal asistant/secretary for his business? Someone please help as we are proceeding to small claims court and need some answers!
2006-10-02 13:05:37 · 6 answers · asked by jessie k 1 in Business & Finance ➔ Small Business
There are a lot of "maybe you should have" here. That does not help with the past mistakes, take them as lessons learned. Here is my take on things
1) An oral agreement is as good as a written one, but you have to prove it. That is the problem. Make sure you have your invoices, receipts, and any other documentation showing the work you did. Hopefully you have pictures of the work as well. When you go to work you can show these as proof of work. Judges are not stupid, they will believe you if you show that you spent money.
2) The real question is how much money is involved. Are we talking a thousand dollars? If so then small claims is good. A few hundred? Let it go. Many thousands, get a lawyer. The problem is the lawyer will eat up all the money you get.
3) A lien is not as powerful as was initially described. It is a tool used when the amount of money will not warrant a law suit. The problem it that is serves better as a threat than a tool. A lien does not prevent much. It is attached to the C of O and prevents the opening of a building or sale. If you miss your window with the C of O, then it will only help with the sale of the building. But you have to have obtained a building permit to file a lien in the first place. If you did not get a building permit, filing a lien could possibly get both of you in trouble with the local jurisdiction.
Moral of the story is get it in writing. Nothing comes between friends/family faster than money. If your intentions are not clear via a contract, it could put undue stress on the relationship. Good luck
2006-10-03 04:34:17 · answer #1 · answered by Craig B 4 · 0⤊ 0⤋
If you can get everyone to agree that the oral agreement was in place, then you're probably okay.
If you have third-party witnesses that can support you (heard the agreement) then you're probably okay.
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Okay, let's cut to the chase here. From my personal experience as a small businessman.....
1. If you are in business, you need to have a lawyer, an accountant, and a computer geek. These people need to have your absolute trust, so chose wisely. You have chosen not to have an atty, which means that you will suffer tremendously until you get one.
2. You obviously haven't incorporated. Why, in the name of (diety), would a construction company not be incorporated? Do you like having everything that you own, and every dime you have made and will make, be on the line WHEN you get sued (and you WILL get sued)?
3. If you charged 1/5 of the going rate, this indicates that the "friend" might not have lots of cash. In that case, even if you get a settlement, you might not be able to collect.
3.5 If you sue him, the job is over. You might get paid, but the job is over (as is the "friendship"). That is your reality.
The best thing you can do for your hubby is to become the business manager for your little company. Go to a lawyer, incorporate, and make yourself part owner (there are contracts for women-owned businesses). Then go to an accountant and get legal with the taxes -- bonus points if you find a CPA that knows construction firms and can help you run it.
This is an expensive lesson. However, this is the "tuition" for the lessons that you're learning in all of this.
2006-10-02 13:20:24 · answer #2 · answered by geek49203 6 · 0⤊ 0⤋
There is something called a "Builder's Lien." This is a very powerful law is on the books to protect the contractor in cases where work is done but not paid for in full. Try finding out about that, If you can prove work was done( pictures, witnesses) and your husband was not paid, an "oral contract" may be enough because the work has clearly been done.
2006-10-02 13:26:12 · answer #3 · answered by Patrick C 2 · 0⤊ 0⤋
from now on, get stuff in writing.!
Bring receipts to court of any materials used in the construction.
2006-10-02 13:08:07 · answer #4 · answered by Jennifer J 2 · 0⤊ 0⤋
as if it was written
2006-10-02 13:07:37 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Survey says......please tell him to put it on paper! Please......
2006-10-02 17:17:13 · answer #6 · answered by lamar36116 2 · 0⤊ 0⤋