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If the term of a services contract ends, and the contracted…

If the term of...

If the term of a services contract ends, and the contracted work continues for awhile afterward, but it is never fully completed, is the customer liable to pay the original contracted rate in full? Is the contractor required to provide an invoice for services after the contract term ends?

Lawyer's Assistant: Was this discussed with a manager, HR, or an attorney?

No

Lawyer's Assistant: Has anything been filed or reported?

No, but the contractor sent a notarized letter claiming payments were not rendered that were never invoiced, and made false statements in the letter about the same payments.

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Answered in 2 minutes by:
8/5/2017
Thelawman2
Thelawman2, Attorney
Category: Legal
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Hello, my name is ***** ***** I will be helping you todday.

When the contract ended and the contracted work continues, were you aware that the contracted work was continuing and did not tell them to stop, or did you not realize it was ongoing until after the work stopped?

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Customer reply replied 6 months ago
We were aware the work was continuing, and told them to finish the phase of work that was in progress and then end their services. This was a contract for renovation of two bathrooms and fixing a leak in the basement. They had not completed the first bathroom when the contract term ended, so we told them to complete the first bathroom and we will stop.
Customer reply replied 6 months ago
Here is the crux of my issue right now. In the letter furnished by the contractor, he states:
The second contract payment of $7500 via check #363 was returned as insufficient, and a subsequent attempt to do a balance transfer was stopped. And subsequent attempts were made to collect this payment.Although the letter is notarized and clearly signed by the contractor, all of these statements are actually false.
1. The contract states that the second payment shall be $5000 half way and the final payment shall be $7500 5 days before completion- we were never asked for the $5000, and we were invoiced for $7500 4 days after the contract started and they had begun work.
2. This $7500 was promptly paid by us via credit, not check, and the contractor promptly attempted to refund the charge (the same day!) because the credit card processor's "fees were too high". When the processor would not process the refund, we proceeded to officially dispute the charge, explaining the situation to the bank. The dispute was honored. We have evidence including refund receipts and bank/credit card records showing the charge, refund, and dispute. This refund occurred during the contract period, and before we decided to terminate the rest of the work.
3. The contractor has NOT invoiced us for another $7500 since the dispute was fully settled. The contract period ended, and we have since requested termination of the work.This original $7500 payment was made with the understanding that the work would be completed as described in the original quote and contract.What I need to know- Are we liable for the $7500 if the contract period is over, the work was not completed in full, and the contractor has NOT invoiced us for another $7500, or any other payments relating to the work since we verbally requested to terminate the contract.

Got it.

If the work was not completed then you are not responsible for the $7500 and in fact, you could potentially sue the contractor for damages since they have not completed the work as agreed upon and you are going to have to go out and find someone else to complete it.

You will just need to gather as much evidence as possible to dispute the statements that your contractor is making. At this point, you can just ignore the certified letter, but eventually if he brings a lawsuit, you might want to think about hiring an attorney to defend this and potentially bring a counterclaim.

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