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TexLaw
TexLaw, Attorney
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Experience:  Lead trial/International commercial attorney licensed 11 yrs
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If I had a contract to provide services to the State of New

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If I had a contract to provide services to the State of New York that expired and we continued to provide services without an extension. During this time we were in discussions to extend and lets say they ultimately decided not to extend would they be liable for the lapse period where I still provided services? Where is this covered in NYS Contract Law? Is there some exception since its a state agency that allows them to get out easier?
Hi,

Thank you for your question.

Just to make sure that we are on the same page, the contract stated that it had a definite term which expired and there was no clause in the contract about renewal?

After the termination, you continued to provide the service. Did the state continue to pay as agreed?

Are you asking whether the contract is automatically renewed because of the continued business?
Customer: replied 3 years ago.

It had a definite term of 3 years. We've been doing these 3 year terms for 12-15 years now. We always had a new contract in place before the old one expired. With budget appropriations and new vendor payment approval processes the state is back logged with contract approvals. We continued to provide the services but until there is an approved contract they cant pay us. We continue in good faith assuming that the terms of the old contract are implied. If they decide to not renew the contract what am I entitled to legally.

Thank you for your response.

When a contract expires according to its terms, there is no agreement in place which governs the relationship. However, where work is performed for one party at the request of another, payment for the work may be recovered under the theory of quantum meriut, which is an implied contract for payment where work is performed.

Has there been any verbal assurances given to you that the contract would be renewed and that the state wants you to continue work?
Customer: replied 3 years ago.

They want us to continue but no verbal assurances that the contract would extend. It needs to go through comptrollers Office and they dont speak to vendors. Our contacts cant really say what will happen.

If I was your general counsel I would advise you to stop work. You need a specific verbal agreement that you will be paid to continue on in this situation. You have a right to claim payment if they end up not paying you through quantum meriut, but you certainly should not rely on it (you have to prove it in court, which can always go either way).

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