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Home>Levelset Community>Legal Help>What right does a contractor have to cancel with a nuisance customer? Customer calling at 11 PM on job not due to start for a few days; asking me to overcharge and split difference, etc. I cancelled, promptly refunded down payment and am now being sued for breech

What right does a contractor have to cancel with a nuisance customer? Customer calling at 11 PM on job not due to start for a few days; asking me to overcharge and split difference, etc. I cancelled, promptly refunded down payment and am now being sued for breech

NebraskaConstruction Contract

My boss cancelled nuisance job and now ex customer is claiming breech. Went with highest company and now wants difference between bid and what he actually paid

1 reply

Sep 17, 2019
Whether or not a contractor is entitled to cancel their contract will come down to the terms of the contract, itself. If the contract allowed for termination of the agreement, then termination should be done in the manner set out by the contract - and, if the termination is done by the book, canceling the agreement would generally not result in a valid breach of contract claim. But, if the cancellation wasn't done in line with the contract, or if the contract was silent as to how the contract could or should be terminated, then the situation may fall into the gray area. In the event that the termination of the agreement wasn't done as required, or where there's no guidance as to how the contract was canceled, it's possible that an owner might succeed in pursuing a breach of contract claim. Though, there are a lot of variables that would come into play to determine how successful or unsuccessful that breach claim would be. Generally, though, an owner will be required to do their best to mitigate the damages they incur when hiring a replacement contractor. So, if an owner truly did seek out and accept the most expensive bid, then they might not be entitled to recovery (or full recovery). Ultimately, though, breach of contract claims are heavily dependent on the terms of the contract and the specific circumstances surrounding the termination of the agreement. So, when a breach of contract claim is being brought, it's wise to consult a local construction attorney - they'll be able to review all of the relevant documentation, communications, and other circumstances then advise on how best to proceed. Plus, if you're being sued, you'll likely need an attorney anyway.
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