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Can my parents' carport contract be voided after their property was flooded during Tropical Storm Imelda?

TexasConstruction Contract

Hello! My parents recently paid a down payment for the building of a carport for their house (construction has not begun). This past week, their property was flooded during tropical storm Imelda. This is the second time their property has been flooded in two years(it was flooded during Hurricane Harvey), and they no longer intend to live on that property. They called their contractor to cancel the work, but the contractor is insisting that they must pay him as he already bought the material and that he will still build the carport wherever they end up. Since there was a natural disaster that has affected my parents' living situation and property, is there any precedent for their contract being voided? As of right now, they still owe money to the contractor as he is refusing to return their money or cancel the job. Thanks in advance for any info you have!

1 reply

Sep 27, 2019
The ability to cancel a contract will generally come down to the terms of the contract itself. So, if the contract has any specific termination provisions, it's a good idea to first look to the contract to determine whether the contract can be canceled and how that should be done. But, very typically - an owner can't unilaterally cancel a contract they've entered into, even when there are circumstances that may be considered extenuating. Force majeure Further, many contracts will feature a force majeure clause which might help to escape contract obligations when the contract becomes impossible due to natural disasters. However, one party changing their mind as a result of a natural disaster might not be a viable reason for canceling a contract pursuant to a force majeure clause. Rather, such a clause is more typically enforceable when performance has become impossible. So, in a situation where a contract could still be performed, as planned - force majeure will likely not be an out, even if the contract provides for it. Even when contract breached... Even when an owner decides to cancel their contract in a way that puts them in breach of the agreement, that doesn't mean they'll owe the full amount of the contract price. No, the contract price factors in a lot of things - like labor not actually undertaken and materials not already purchased - which raise the price of the agreement. So, while an owner may be responsible for some costs if they cancel their contract, they won't typically be responsible for the entire contract price. Plus, once a contractor is aware that their customer no longer intends to go through with the agreement, they're responsible for trying to mitigate what costs they incur. Still, if a contractor has incurred costs specific to the project that would be undertaken, or if they'd otherwise be damaged by the cancelation of the contract (which will often be the case), then an owner will likely need to get squared away with their contractor before they're entitled to walk away from the deal. Consulting with a Texas construction attorney would help It'd be helpful to consult with a local construction attorney, especially if there are large dollar amounts on the line. They'll be able to review the contract and other relevant circumstances and advise on how best to proceed. Here's a list of Texas construction attorneys we've identified as experts in their field. Plus, if you happen to be near Austin, we've got a great post on top Austin construction attorneys: Top 5 Construction Attorneys in Austin Texas 2019.
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