Friday, October 22, 2010

Providing Professional Services With No Express Contract

In the real estate and construction industry, there may be instances where a party may start the provision of certain services without any express contract. Here is an example of a case we dealt with. (Client’s written permission has been sought to write about this case) A client company wanted a painting subcontract at the building sites of a main contractor. The main contractor wanted client to demonstrate their work by painting a room at the building site. Main contractor was impressed by client’s work and client ended up painting 5 housing units. Before a formal agreement for the subcontract was drawn, the relationship between subcontractor and main contractor turned sour. Main contractor sacked client from the site and refused to pay for the cost of painting the 5 houses arguing that there was no express or implied contract between them. We sued under Quantum Meruit claiming payment of the reasonable value of work done for the main contractor. Client was reimbursed with what a fair commercial rate would have been for the services rendered.

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