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Can a subcontractor take contractor to court for nonpayment without signed contract?
Wiki User
∙ 13y ago
Yes, verbal contracts are also binding
Wiki User
∙ 13y ago
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What is a Collateral Contract?
A collateral contract is a contract which assigns the rights and/or obligations of an existing contract to a third party. Due to the doctrine of "privacy of contract" only those parties mentioned in a contract have rights and obligations and it is illegal to assign these rights and obligations to third parties without the consent of the other parties to the main contract. Collateral contracts overcome the privacy of contract doctrine. Collateral contracts are used in the construction industry to make a direct contractual relationship between clients and sub-contractors. In the collateral contract the client will promise to pay the sub-contractor for the works that the main contractor promised the client to undertake. This collateral contract comes in handy when the main contractor goes insolvent or has late payments or, more importantly, when the subcontractor's performance is substandard.
Can a subcontractor sue a contractor for nonpayment?
Yes under contract law a subcontractor can sue for breach of contract. However subcontractors should become familiar with the state's construction or mechanics lien laws which grants them the right to lien the property to secure payment. Many states have preliminary or warning notices that must be served on the property owner(s), lender(s) and primary contractor within a specified period in order to secure lien rights. Do NOT lien a property without valid lien rights since you risk a multitude of retaliatory lawsuits.
Can a contractor hire a sub-contractor without the permission of the owner hiring the contractor?
That will depend on the contract. Some contracts allow it, others require notification and approval of sub-contractors.
Can the COR modify a contract?
When a contractor performs work beyond that required by the contract without a formal change order and it is perceived that such work was ordered by the Government or caused by Government fault, this is defined as what
Drennan rule mean in construction law?
The Drennan rule in construction law states that a subcontractor can claim damages from a general contractor who has relied on the subcontractor's bid to secure a project, even if they did not directly enter into a contract. This rule helps to protect subcontractors from having their bids used for securing projects without compensation.
Is an insurer liable if a contractor he has given a performance bond dies without performing?
The insurer is liable in all cases where the contract to preform the work is enforceable. If the contract (not the bond) has an escape clause for death, then no.
When a contractor performs work beyond that required by the contract without a formal change order and it is perceived that such work was ordered by the Government or caused by Government fault this?
Unauthorized commitment
What do you need to sue a contractor that put a lien on my home without finishing the job in illinois?
Did you pay the contractor? If not, he had the right to lien your property. If you want to sue the contractor, you need to be able to prove that he did not finish the job. For example, if he put an addition on your house and did not roof it, you need to show in the contract where it states the work included roofing the addition.
Is a property owner liable for a mechanic's lien filed by a landscaping company when the contract was entered into by the renter without the owner's knowledge?
No. The contractor must sue the tenant for the money due.
If you employ less than 3 can a contractor charge for workmans comp?
The key word here is "contractor". The question of the size of the employer's workforce becomes moot when (s)he must deal with a contractor; because, a contractor is not an employee. Those things which govern the actions of and expectations from an employee by a business entity do not apply to a contractor except where stipulated and spelled out in the contract. The same holds true for those things for which a contractor may charge someone: Without a signed contract, a contractor can charge for anything (s)he wants to... It is only when the contract which contains such a stipulation gets signed that any legal and binding obligations to pay come into existence. If You are dealing with a contractor, and the terms of the contract are not to your liking, you need to check around to see if these types of terms are customarily included in contracts for the services for which you are contracting. It may be that what you see IS a customary charge in an acceptable contract. It may also be the case that you are dealing with a contractor who is one of only a few who are prone to include such a charge. Negotiation of the contract may be an option. A contractor's dealings with a small business are not the same as those with a large corporation; and, whereas a large corporation may be accustomed to accommodating a contractor in certain ways, a small business may not. You may have the wrong contractor. All of this is the homework that needs to be done when shopping for a contractor; and, a good fit between contractor, contract, and contractee is the aim for all concerned... ...and it depends on the state. Your contractor (your General Contractor?) may be asking you this because he believes your state to be a "ladder state," meaning liability goes up the ladder until someone can pay. He may require you to carry coverage so he doesn't wind up paying it himself in an audit and having to pay claims from your employees. If so, it's fair and reasonable for him to ask you to carry Comp. Further, though some states would exempt you from coveragerequirements with fewer than 3 employees, no state exempts you from liability.
Who is liable for contractor's damage to neighbor's property?
Typically, the contractor would be liable for damages caused to the neighbor's property. The contractor is responsible for ensuring that the work is done correctly and without causing harm to others' property. However, in some cases, the homeowner who hired the contractor may also share liability depending on the specific circumstances and agreements in place. It is important to review the contract and consult with legal experts if necessary.
Who made the first moon buggy?
By "Moon Buggy" I assume you mean the LRV (Lunar Roving Vehicle) used in the Apollo missions. Boeing was the prime contractor; General Motors was a major subcontractor and is responsible for the mobility portion (wheels, drive, suspension); without GM, it would have been a Moon Sled.
