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TexLaw, Attorney
Category: Legal
Satisfied Customers: 4430
Experience:  Lead trial/International commercial attorney licensed 11 yrs
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I would like to Break Contract with Project Manager. Hi I am

Customer Question

I would like to Break Contract with Project Manager. Hi I am trying to open a Restaurant in California. I hired a project Manager on August 2008 and I was to pay him $5,000 in three separate payments. in December 26th I was told by the City I was ready to pick up all permits since everything was approve but I have not been able to get funding with construction. below you will see it directly from the contract. "Within 3 calendar days of the delivery of the construction Documents to the Authorities having jurisdiction for the issuance of the required permits, licenses and authorizations required for the Project owner shall make second payment of $5,000." SO AM I LEGALLY OBLIGATED TO PAY HIM OR NOT? I DON'T THINK SO BECAUSE THE CONTACT SAYS " issuance of the required permits, licenses and authorizations required" NOTHING HAS Been issued yet?
Submitted: 7 years ago.
Category: Legal
Expert:  TexLaw replied 7 years ago.
Dear Mr. Singh:
Thank you for submitting your important legal issue to Just Answer. I am pleased to have the opportunity to provide you with an honest and easy to understand answer to your question.

I am an attorney licensed in the State of Texas. The following information is a brief answer to your question. However, if you feel that you need further information or that you have other insights which might help me in providing a better answer, please feel free to write back.

In regard to your question on whether you owe the Project Manager a $5,000 payment, my interpretation of the contract language would indicate that indeed you do. The referenced clause is called a condition precedent. In other words, before your obligation to pay the Project Manager arises, the construction documents had to be delivered to the city. From what I garner from your question, it appears that the construction documents were delivered to the city already. Thus, you are obligated to pay him the money.

You can breach your contract with the project manager, but you will be liable for breach of contract damages unless you have a qualified defense. Unless you can point out something specific in the contract that the Project Manager failed to do, or some specific instance or failure of the Project Manager that goes outside the norm of industry standards for performance by a project manager, then you will likely be liable for damages. Unless it is more efficient to pay these damages, plus possible attorneys fees to the Project Manager, than it is to continue on with the Project Manager, then you should continue to honor your contract. The $2,500 settlement offer he suggested might be a good deal.

I hope that this information has been helpful to you. If we can be of any further assistance please free to use our service again. Best wishes for a successful outcome.

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The information provided is general in nature only and should not be construed as legal advice. By using this forum, you acknowledge that no attorney-client relationship has been created between you and Zachary D. Norris or The Norris Law Firm. For complete legal advice and representation, you should consult with an attorney licensed to practice in your state.

Customer: replied 7 years ago.
I don't think I was too clear on the contract information. I would like to email you 2 pages out of the contract that will help you in determining if I need to pay him or not. I just think I might have been to general and missed the details. my email adress [email protected] , if you can email me I can reply with the 2 pages in PDF file, this would be such a great help if I know for sure that I am Obligated to pay. Thank you
Expert:  TexLaw replied 7 years ago.
I apologize for the inconvenience, but due to the website forum rules I prohibited from sharing my personal email address with you, nor can I view your personal contact information. For an in depth contract review, you will need to contact a local attorney.

Another avenue would be for you to cut and paste the contract language into your response here.
TexLaw and 7 other Legal Specialists are ready to help you
Customer: replied 7 years ago.

What I am trying to Ask is if I submited for permits in a restaurant for a city and I recieved a letter saying all Permits for Construction are approved and ready to be paid for and pulled, AM I STILL OBLIGATED TO THE CONTACT?
keep in mind the contract says "upon receiving of all required Permits, licences, and approvals for construction."
Expert:  TexLaw replied 7 years ago.
Yes, you are still obligated to the contract.

If the guy is not performing in an acceptable fashion, you can terminate the contract and pay him only for the work he has performed.   

I believe what you are saying is that you believe the contract required the project manager to submit the documentation to the city, rather than you. Thus, you believe the contract manager breached the agreement. Is this correct?
Customer: replied 7 years ago.
No I am not saying the Project Manager (P.M.) is at falt because He filed for Permits and not me. I am saying what is what determins if I have recieved the Permits? is it the fact city has said I am ready to Pay and pick up permits or is it if I phyisically go Pay and Pick up permits? becasue If I don't have funds for Construction then I will dont pick up permits and so will I still be obligated?
Expert:  TexLaw replied 7 years ago.
Thank you for your response. It's often difficult to communicate the crux of a complicated legal question when not meeting face to face.

You have stated that the contract states:
"Within 3 calendar days of the delivery of the construction Documents to the Authorities having jurisdiction for the issuance of the required permits, licenses and authorizations required for the Project owner shall make second payment of $5,000."

By this term, it is not when you go and "pick up" the documents or whether the City issues you with permits or other licenses, but the fact that you have delivered the documents to the City in the first place that obligates you to pay.

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