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Asked in CA May 26, 2022 ,  0 answers Visitors: 2

contract (lack of)

My realtor( at the time) representing

me in the sale of my home, lost two

sales in escrow before informing me

that one major item in the Pest

Report was causing the buyers to

cancel their offer. When I was finally

made aware of the report and the

overstated damage + cost to

investigate and repair, the realtor

was asked to get three estimates

from reputable contractors to use as

leverage and proof the report was

overstated. Instead he only got one

and then hired this contractor

without a contract or anything more

than an estimate. The contractor

claims, without any proof, that the

work was complete and has sued in

small claims for $2700. The

contractor used e-mail

communications between the seller

(me) and the realtor (the one who

approved him to commence) as

evidence I knew the amount to be

fair and reason to do the job. The

judge favored the contractor because

there was ''betterment'' to the

property. My ? is - without a

contract, an invoice or proof other

than the fact I saw this person enter

the property for roughly 30 minutes

am I liable for this verbal contract?

Can my realtor bind me to an

amount over state law $500

Data From  LAWGURU_Question

2 Answers

Anonymous
Reply

Posted on / Oct. 16, 2007 21:25:00

Re: contract (lack of)

What state law $500 do you mean? The Commercial Code (section 2201) has a $500 limit for sales of goods by oral contract, but this isn't a sale of goods, it is performance of services. There is also a requirement in the Business and Professions Code that certain home improvement contracts must be in writing; whether this job came under that proviso isn't knowable from the facts given.

Further, the various "Statute of Frauds" enactments requiring written contracts in a variety of situations are among the most porous laws on the books. A good lawyer can find a loophole and get enforcement of some kind on more than 50% of the oral contracts that shoulda been in writing under the letter of the law. Often, this will be because there is some sufficient written memorandum of the contract to prove by writing that one was formed. Or, the court can ignore the oral contract completely and order payment in the form of monetary restitution to avoid an "unjust enrichment" of the beneficiary of services or goods on a quantum meruit or quasi-contract theory.

In addition to the lack of a written contract theory, you also seem to allege that, if there were an agreement of any kind, it was made by the Realtor, not you. The problem here is that this person is your agent for getting the house sold, and contracts made by an agent with apparent authority of the principal are as binding on the principal as though he made them himself.

I think you may have a stronger case against your Realtor than against the contractor. The Realtor owes you a bunch of duties, including a duty to follow your instructions and to keep you informed. Mind you, I don't know whether your have a good case for breach of those duties, but it could be the stronger of the two.

Anonymous
Reply

Posted on / Oct. 16, 2007 21:25:00

Re: contract (lack of)

What state law $500 do you mean? The Commercial Code (section 2201) has a $500 limit for sales of goods by oral contract, but this isn't a sale of goods, it is performance of services. There is also a requirement in the Business and Professions Code that certain home improvement contracts must be in writing; whether this job came under that proviso isn't knowable from the facts given.

Further, the various "Statute of Frauds" enactments requiring written contracts in a variety of situations are among the most porous laws on the books. A good lawyer can find a loophole and get enforcement of some kind on more than 50% of the oral contracts that shoulda been in writing under the letter of the law. Often, this will be because there is some sufficient written memorandum of the contract to prove by writing that one was formed. Or, the court can ignore the oral contract completely and order payment in the form of monetary restitution to avoid an "unjust enrichment" of the beneficiary of services or goods on a quantum meruit or quasi-contract theory.

In addition to the lack of a written contract theory, you also seem to allege that, if there were an agreement of any kind, it was made by the Realtor, not you. The problem here is that this person is your agent for getting the house sold, and contracts made by an agent with apparent authority of the principal are as binding on the principal as though he made them himself.

I think you may have a stronger case against your Realtor than against the contractor. The Realtor owes you a bunch of duties, including a duty to follow your instructions and to keep you informed. Mind you, I don't know whether your have a good case for breach of those duties, but it could be the stronger of the two.

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