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I'm a contractor and have a signed contract with a client.

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I'm a contractor and...

I'm a contractor and have a signed contract with a client. They want to be released from their contract. I have no issue releasing then since they are a nightmare client, but I am currently out money on their project and would like to collect on that before releasing then from their contract. Our contract States that we are entitled to collect for labor and materials and overhead and profit up to the termination date. They are threatening to go to court if we don't release them from the contract based on it's been taking too long. But we didn't actually have a set end date and they have changed the plans a dozen times. So again, I have no issue releasing then from the contract, but would like to collect for materials and labor due up to this point. Wondering the best way to state this and to maybe add a clause that they also can't file a suit against us at a later date either.

Lawyer's Assistant: What state are you in? It matters because laws vary by location.

Wisconsin

Lawyer's Assistant: What steps have you taken so far?

We just received a formal letter from them requesting to be released from their contract and they want a response by 3/26 or they will take legal action.

Lawyer's Assistant: Anything else you want the lawyer to know before I connect you?

Not at this time. Thanks

Submitted: 1 month ago.Category: Legal
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3/21/2018
Lawyer: Legal Eagle, Lawyer replied 1 month ago
Legal Eagle
Legal Eagle, Lawyer
Category: Legal
Satisfied Customers: 10,314
Experience: Licensed to practice before state and federal court
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Hello I am an attorney here to help. In sorry to hear about your situation. Generally, if there is no specific time of performance, a court would look at what is reasonable in your industry. a court would also look at the benefit of the bargain for both parties in addition to looking at the terms of your agreement in coming to a decision.In your case, if you have done work and the agreement states that you are entitled to labor and materials up to that date, then a court would award you that money and subtract any time that was unreasonable in your performance. For example, if it would have taken a typical contractor one less week to do the same work, they would probably reduce your recovery by that amount.
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Lawyer: Legal Eagle, Lawyer replied 1 month ago
Thus, my recommendation is to explain that a court would likely rule in your favor, but that a modification of your agreement to have you be paid for just what you've done would be a fair compromise in like of litigation.Did you have any other questions for me about this?
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Customer reply replied 1 month ago
One more question. We are the general contractor on the job and we hired a subcontractor to do some work, that subcontractor then hired a subcontractor himself to do that work we hired him for. Now the subcontractor that he hired is demanding that we pay him. Are we legally bound to pay this subcontractor that we didn't hire and have no contract with?
Lawyer: Legal Eagle, Lawyer replied 1 month ago

Thanks for your patience. The answer is no, you're not legally bound to by that subcontractor's sub. Only if you agreed with the original subcontractor that you would pay anyone they hired would you be bound to do that. My recommendation is to just pay the original subcontractor and let him or her pay their own sub in their own way.

Did you have any other questions for me today that I could help you with?

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