We are often asked, “Can a contractor sue for nonpayment without a contract?” When we get this question, we know that it really is asking, “Can a contractor sue for nonpayment without a contract that has been signed by the client?” A verbal contract is still a contract. We know that sometimes contractors don’t get signed contracts before starting their work—Many rely instead on invoicing.
In any business exchanges involving handshakes or verbal agreements, there may be people willing to abuse the trust you have in others. So, can a contractor sue for nonpayment without a contract that has been signed by the client?
Can a Contractor Sue for Nonpayment Without a Contract That Has Been Signed by the Client?
The short answer is “yes.”
A contractor can sue for nonpayment without a contract even when there is no written contract in place to prove a business transaction was pre-approved between you and your client. However, the reality of the situation is that it’s going to be much harder to successfully accomplish than it would be with a written contract. a
How To Sue for Nonpayment Without a Contract, And Win
While the short answer to this question is also “yes,” there are several things that you will have to do before you can ever hope to successfully sue.
Firstly, you’ll need to somehow show proof that a verbal agreement was made between you and your client. We can divide this up into two categories, evidence of the agreement and evidence of the work.
Evidence of the Agreement
To prove that there was a handshake agreement, you may need to acquire electronic evidence such as a text message, email, or voicemail proving that the client agreed to pay you for the job. While a witness very well could be valid evidence in favor of a handshake agreement existing, it may be hard to find an unbiased witness in cases of verbal contracts.
Evidence of the Work
Then, to prove that there was any work done, you’ll need to have some sort of physical or photo evidence that the work was completed. This can take the form of before and after photos of the worked area.
Without some strong evidence of both a handshake agreement existing and the work being done by you, a judge may not side with you if your client argues that they did the work themselves or that you did something that would warrant nonpayment.
Are There Limitations?
While it varies from state to state, you must keep in mind the statute of limitations for verbal contracts when deciding whether you want to sue. Your case will not even make it to court if you fail to sue within the allotted time frame.
In Texas, the statute of limitations for both oral and written contracts is the same length, precisely four years. So long as whatever evidence you have proves that the breach of your handshake agreement was within the last four years, you may be able to successfully sue your client for nonpayment.
Of course, you must be mindful that the Texas Statute of Frauds specifies that certain types of contracts are only valid in written form. Stipulations about contracts involving real estate and contracts that last longer than a year from the agreement could apply.
In California, the statue of limitations for oral agreements is two years after the date the contract was broken.
Under California Civil Code Section 1624, the Statute of Frauds also requires specific types of agreements to be documented in writing. These include contracts related to marriage, real estate transactions, brokerage services, loans, debt repayment, sales of goods, and any agreements that cannot be fulfilled within one year.
Hire a Litigation Attorney to Know More: Can a Contractor Sue for Nonpayment Without a Contract?
While the simple answer to the question, “Can a contractor sue for nonpayment without a contract” is that you can, you can see there are limitations and variables. To find out if you have a case worth litigating, contact an experienced litigation attorney for advice.
At LloydWinter, we can fight for your right to get paid, even if you do not have an official written contract. Our legal team offers aggressive litigation experience and a record of successful civil suits for both individuals and small business owners. Do not wait another day to start the process of getting your money, contact us to get the payment you deserve.
