Can a business initiate collection proceedings for work done on a verbal contract after they were told their services weren't wanted?

Answer 1

Perhaps, several states consider verbal contracts binding agreements, if there is enough evidence that both parties were aware of the terms they were being agreed upon. This would only apply to work that was done before the party was notified that their services were no longer required. It is possible if litigation resulted the plaintiff could be awarded attributed damage costs if they prevailed.