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Dimitry K., Esq.
Dimitry K., Esq., Attorney
Category: Legal
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Experience:  Multiple jurisdictions, specialize in business/contract disputes, estate creation and administration.
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we have contract to build a house in two phases foundation

Resolved Question:

we have contract to build a house in two phases foundation work 1st at $23,640 second phase, shelled in framing at $93,000. Builder claimed 3 weeks tops for foundation its been 9 weeks we gave them $25,000 dn and they are requesting and additional 19,000 to complete foundation work we fired them and now they are putting a lien on us for 115,000 fore the entire contract. what are our options
Submitted: 8 months ago.
Category: Legal
Expert:  Dimitry K., Esq. replied 8 months ago.
Thank you for your question. Please permit me to assist you with your concerns.

If I may ask, did your contract have a 'time of the essence' clause or did it have a right to terminate based on missed deadlines?
Customer: replied 8 months ago.

no

Expert:  Dimitry K., Esq. replied 8 months ago.
Thank you for your follow-up.

Before you terminated the contract, did you give notice or a deadline and time for the party to complete what they were contractually obligated to perform?
Customer: replied 8 months ago.

no because he wouldn't finish without additional 19,000 and he was already over his original amount in contract we knew he could never finish project within dollar amount specified in contract, also we got a letter of intent to place lien on our property because he owed them 15,500


on our job site

Customer: replied 8 months ago.

did you receive my last info

Expert:  Dimitry K., Esq. replied 8 months ago.

Thank you for your follow-up.

 

Here is the issue as it currently stands--under common law if there is a potential breach or changes in terms, the parties have to give each other 'reasonable' time to cure the breach or find a compromise. Simply breaching and cancelling permits the other party to claim that a full breach took place, and claim damages in the value of the full agreement and for full amount parties agreed upon. As a consequence their lien, at least as it stands, is perfectly legal and valid. What you would therefore need to do is consider claiming that they acted in bad faith and demand removal of the lien. But until you allow them to finish the project at the original value, they can keep the lien against you. Then you would need to give them written notice of a deadline to perform and if they fail, THEN take them to court over breach and removal of the lien. But please be advised that you will be working uphill as you have essentially breached first, even if it was them who increased the price on you.

 

Hope that helps clarify.

Dimitry K., Esq., Attorney
Category: Legal
Satisfied Customers: 37123
Experience: Multiple jurisdictions, specialize in business/contract disputes, estate creation and administration.
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