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Can I still collect without a signed contract?

Georgia

We did work for a client on a handshake. He paid all phases no problem until the last phase. He told us to stop work but we couldn’t for structural integrity reasons. We showed him what we were going to do before we started. I informed him that we couldn’t stop and had to finish for liability reasons. He now refuses to lay his $40k balance.

1 reply

Dec 6, 2019
As a general rule oral contracts are enforceable in Georgia, but there are exceptions for certain contracts that must be in writing under what is called the Statute of Frauds (O.C.G.A. 13-5-30).  Among the contracts that must be in writing are contracts that cannot be performed in less than one year.  However, there are further exceptions where, for example, one side of the contract has been performed in full and accepted by the other side, or where part performance has been rendered and it would constitute a fraud for the party receiving the benefit of the performance not to be required to pay.  Likewise, there are certain equitable remedies that might be used to recover the value of services rendered (such as unjust enrichment or quantum meruit) that may apply even if the "contract" is found not to exist or to be unenforceable.  An attorney would need more information to determine whether the Statute of Frauds applies in this case, etc. Ultimately, every case depends heavily on the specific facts and circumstances and you are best advised to consult an experienced construction attorney.  The short answer, though, is that you are not necessarily dead in the water without a written agreement.  Additional considerations, including whether the statute of limitations has run, are further reasons to consult an attorney.
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