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Is there a valid contract and what is the best option for economic relief

New JerseyConstruction Contract

Michael, a contractor, agreed to go to his cousin’s house on a Saturday morning to provide an estimate for building a shed in the backyard. While Michael was inspecting the yard, the cousin suggested that since it was a nice day, he should start to work on the shed right away. The cousin happened to have a document on hand that stated in sum: “I (the cousin) and the Michael(the contractor) agree that he will build a shed in my backyard measuring 8 ft. x 12 ft., and I promise to compensate him fairly for his time and effort.” The parties both signed the agreement, and Michael built the shed, even spending $150 of his own money to help pay for building materials that he never asked his cousin to reimburse. Michael states that his cousin paid him only $250 when the job was complete, whereas he usually charges customers $1000 and up for the same work. He doesn’t believe that he was compensated fairly, but his cousin is saying that the payment was fair since the cousin ordered pizza, and because he helped Michael move furniture two weeks prior. Is there a valid contract and why. What are my options or argument to finding economic relief

1 reply

Mar 23, 2020
An offer, acceptance of that offer, and consideration (value) must all be present in order for a contract to be formed. Some other factors will also come into play, as well - like whether there was a meeting of the minds between the parties entering into the contract, and whether both parties had the capacity to execute the agreement. Further, contracts certainly don't need to be written in order to be binding. Further, even in a situation where a contract wasn't actually formed, unjust enrichment might be on the table. It sounds like this might be a homework problem or something along those lines, so I'll let you come to your own conclusions. Here are some other resources online that might help you out: - Basics of Binding Contracts | New Jersey Law Blog - Contractual and Quasi-Contractual Remedies Under New Jersey Business Law| New Jersey Lawyers Blog
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