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Infolawyer, Attorney
Category: Business Law
Satisfied Customers: 57381
Experience:  Experienced lawyer
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Breach of Contract in Construction. I own a subcontracting

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Breach of Contract in Construction. I own a subcontracting company in Tennessee, I made a price proposal to a General Contractor company in Atlanta, GA for $635,000.00 for a project located in North Carolina. By telephone, we reviewed the proposal scope of work and we verbally agreed on the deal and discussed schedule. I have several emails from the project manager concerning when we would start and materials we would be using. The time to start is now and I was told he elected to go with another subcontractor for this work. I have no written letter of intent or contract. Do I have a case for breach of contract? if so, would the venue be in tennessee?
Submitted: 8 years ago.
Category: Business Law
Expert:  Infolawyer replied 8 years ago.
If you dont have a written contract as to price you do not unless you have performed and then you can seek recovery on that basis.
Customer: replied 8 years ago.
I read in a law book that oral contracts are binding if you can confirm the offer was accepted. Written contract are required where definition of scope is a issue. I don't think that all contracts have to be written to enforce. ???

Expert:  Infolawyer replied 8 years ago.
All contracts do not need to be in writing but here you are missing a material element of a contract: agreement on price. If there was performance, then one side can enforce it on the basis of services rendered, and try to prove price.   
Customer: replied 8 years ago.
This was a request for bids by the General Contractor. We were the low bidder at the time. The scope was discussed and price confirmed. The recent competitor we just lost the job to did not bid at the time the work was bid. I have emails and faxes confirming price agreement and scope but not a formal contract.
If I can sue for breach of contract what am I entitled to? If we did not do the work can I collect for my mark up since I passed on other projects because of commitment on this project by my company?
Expert:  Infolawyer replied 8 years ago.
You would be able to recover the damages you incurred as a result of the loss of the contract. The court would hear evidence on damages and press for settlement.
Customer: replied 8 years ago.
How do you measure damages by loss of contract? I am currently trying hard to fill the void in our backlog of work that was created by this action. If I am successful then I would be due nothing? If I am not successful I may be out of business.
If I take it to court, venue location would be critical to me due to expense. Do I have a chance to make them come to me?
Expert:  Infolawyer replied 8 years ago.
You can sue where you are located. Best to sue where the defendant is located to avoid challenges of jurisdiction, venue and judgment enforcement. Damages would require judge and possible expert testimony on what you suffered as a result such as expenses incurred in planning, lost business.   Kindly accept my answer.
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Customer: replied 8 years ago.
Thank you.
Expert:  Infolawyer replied 8 years ago.
You welcome.