General contractor asks for a retainer agreement and a deposit prior to the project. We've asked to terminate the agreement, prior to start of the project, the general contractor says he's not refunding the deposit and will be charging all the hours spent, prior to the signing of the agreement.
Can he do this? Are we liable for the deposit? Unfortunately, the agreement did not have any termination clause.
He can might be able to claim payment from you on the theory of quantum meruit, (Latin for "as much as he deserves") or unjust enrichment. Did you benefit from his services? If so, he might be entitled to be paid at a reasonable rate for what he did, although not necessarily the rate he quoted you. You should try a complaint to the Califonia Contractors State License Board (CSLB). Go to : http://www.cslb.ca.gov/Consumers/. Their rules might prohibit his claiming anything without a contract.
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This is why it's a bad idea to sign things you don't fully understand and then after the fact ask what they mean.
So what does your contract say about whether the deposit is refundable, and whether the contractor can hold a client liable for the reasonable value of their services rendered prior to termination? Was this a home remodeling contract, that you'd have 3 days to cancel after signing, or some other kind of contract?
No one on can guess what your particular document says, so you're going to have to review yourself or hire a lawyer for help.
Disclaimer: Please note that this answer does not constitute legal advice, and should not be relied on, since each state has different laws, each situation is fact specific, and it is impossible to evaluate a legal problem without a comprehensive consultation and review of all the facts and documents at issue. This answer does not create an attorney-client relationship.
David WeilAdmiralty / Maritime AttorneyLong Beach, CA ·
California law imposes significant restrictions on the allowable terms for a home improvement or repair contract, including limits on any depost (retainer), and a three-day right of cancellation. The California Contracotr State Licensing Board has some excellent resources (www.cslb.ca.gov), including a very good guide to help consumers understand the contracts that they sign. Here is a link to that guide:
