When is a contract formed? : Motoring Non-motoring forum

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Thread Author: Hard Cheese	Replies: 24

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Fri 7 Apr 17 16:18

When is a contract formed? - Hard Cheese

I would be interested in opinions on this - if a quote is submitted in writing and a customer verbally accepts the quote, and then work commences upon a verbal instruction from the customer, is a contract formed in law?

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Fri 7 Apr 17 16:38

When is a contract formed? - Duncan

>> I would be interested in opinions on this - if a quote is submitted in
>> writing and a customer verbally accepts the quote, and then work commences upon a verbal
>> instruction from the customer, is a contract formed in law?

Yes. But how would you prove that a quotation had been accepted?

Department of cliches. "A verbal contract is not worth the paper it's not written on."

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Fri 7 Apr 17 16:42

When is a contract formed? - CGNorwich

The proof is that the customer allowed the work to proceed.

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Fri 7 Apr 17 16:58

When is a contract formed? - Hard Cheese

So the customer allowing work to proceed creates a contract therefore also from the other side to commence the work constitutes acceptance of the contract?

So what if the work is not completed? If the customer says go forth and multiply are they breaking the contract? And if the worker says I'm not completing the work are they breaking the contract?

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Fri 7 Apr 17 17:21

When is a contract formed? - No FM2R

>> So the customer allowing work to proceed creates a contract therefore also from the other
>> side to commence the work constitutes acceptance of the contract?

Not necessarily in either direction and even then how do you prove the terms of that contract?

>>Are they breaking the contract?

Depends on the contract and it's terms. You'd think so, but it wouldn't be difficult to muddy the issue.

Last edited by: No FM2R on Fri 7 Apr 17 at 17:21

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Fri 7 Apr 17 17:18

When is a contract formed? - No FM2R

>> The proof is that the customer allowed the work to proceed.

Not per se. And still difficult to prove.

Perhaps if keys were handed over, or perhaps some other move.

But even thenâ€‹ he may say that his verbal agreement came after he was verbally offered a 40% discount.

Always better to be sure and collect signatures.

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Fri 7 Apr 17 17:30

When is a contract formed? - Manatee

There's another possible nuance here in that a "quotation" could be an offer, or depending on how it is worded, an "invitation to treat".

As a non-lawyer, I guess it could be argued strongly that it is an offer if it includes adequate specifications of the goods and services to be provided, payment terms and or time limits for acceptance etc., i.e. it must be an offer that is capable of being accepted and reasonably complete in its terms.

Conversely, a buyer who gets a quotation and then sends his own purchase order containing the usual onerous terms that buyers usually slip in would probably argue the the PO is the offer, which the supplier accepts.

If it's a car, the bit of paper that would usually be waved about would be the order form, which would be signed by both parties and would include an offer and acceptance if it had been competently drawn up.

In the example you give, maybe it doesn't matter whether the quote is an offer - if it is, and the customers says "get on with it then" then that would be a contract (although difficult for the supplier to prove). If the quote is simply an invitation to treat, then the verbal acceptance of the quote could be the offer (order) and the commencement of the work the evidence of its acceptance.

The customer is in the pound seats here, because he can probably prove both the quote and the work, but the supplier can't prove the verbal agreement. The only one who can really 'prove' the contract to any degree is the customer, but even then there could be an argument about what exactly he said.

Last edited by: Manatee on Fri 7 Apr 17 at 17:34

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Fri 7 Apr 17 17:43

When is a contract formed? - Hard Cheese

So if the customers says give me a quote for (say) fixing my leaking roof, and the roofer quotes in writing to fix leaking roof at xx address, cost Â£xx, and the customer says when can you do it and the roofer says starting next Tuesday and the roofer turns up on Tuesday and removes half the roof and then ...

1/ The customer says don't come back ever, has the customer broken a contract and ...

2/ The roofer does not come back on Wednesday or for ever more, has the roofer broken a contract?

Thanks!

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Fri 7 Apr 17 18:04

When is a contract formed? - No FM2R

If you can put a copy in here of either the signed contract or at least a copy of the contract that both parties confirm they agreed we will be able to answer you immediately.

Failing that its just a he said / they said conersation.

Last edited by: No FM2R on Fri 7 Apr 17 at 18:05

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Fri 7 Apr 17 19:40

When is a contract formed? - Hard Cheese

>> If you can put a copy in here ...>>

It's about a verbal contracts - whether verbal acceptance of a written quote and a verbal instruction to proceed constitutes a contract; and whether proceeding to commence the work constitutes acceptance of the contract.

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Fri 7 Apr 17 19:43

When is a contract formed? - No FM2R

It means utterly nothing.

It depends on the circumstances, what will be admitted or stated, and what the agreement entailed.

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Fri 7 Apr 17 19:32

When is a contract formed? - CGNorwich

Does the customer agree to the work starting on Tuesday either specifically or tacitly by being their when the roofer turns up and allowing him to start work?

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Sat 8 Apr 17 08:27

When is a contract formed? - Hard Cheese

Thanks all!

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Sat 8 Apr 17 09:42

When is a contract formed? - Cliff Pope

Pedantic note: "verbal" means using words. "Oral" is the word for spoken. A verbal contract can be written or oral.

If your builder shouted to you from the top of a ladder that it needed an extra lead widget, and he could do one for Â£50, and you gave him the thumbs up, that would be a non-verbal contract.
:)

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Sat 8 Apr 17 11:29

When is a contract formed? - helicopter

Welcome to the forum Hard Cheese.

The law of contract is based on a number of elements , the main of which are Offer,Acceptance and some form of Consideration...ie payment for the services to be provided....but lawyers have been enriching themselves for years arguing over what constitutes a valid contract....it may be that something had been said constituting a counter offer.

Nobody knows because it was not written down, agreed and signed.

Whilst I feel a contract may have well been formed on the basis of your original post what your verbal contract lacks is proof of what was said or agreed and it becomes pointless arguing it out on a public forum.....

....I speak as someone who made literally thousands of contracts in a 47 year business career buying and selling and not one went to court.

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Sat 8 Apr 17 12:11

When is a contract formed? - Duncan

>> Welcome to the forum Hard Cheese.

Yes. 364 weeks ago.

www.car4play.com/forum/user/settings/profile.htm?id=260

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Sat 8 Apr 17 14:52

When is a contract formed? - rtj70

Hard Cheese is Cheddar of old.

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Sat 8 Apr 17 15:13

When is a contract formed? - Ted

www.youtube.com/watch?v=RkfT7p6kBE0

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Sun 9 Apr 17 06:46

When is a contract formed? - madf

In the construction industry, starting work without a formal written instruction is the kiss of death. Unscrupulous contractors will screw you over price with no written agreement.Or delivery. Or add ons.

Trust no verbal contracts...

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Sun 9 Apr 17 07:20

When is a contract formed? - CGNorwich

Tens of millions of contracts are of course made every day in the UK which are neither I'm writing or even.verbal but are seldom disputed.

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Sun 9 Apr 17 08:02

When is a contract formed? - MD

If Mr. Cheese really wanted the correct honest answer I would have thought that he might have provided more detail. I fancy he doesn't want to be seen as wrong.

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Sun 9 Apr 17 23:40

When is a contract formed? - Hard Cheese

>> If Mr. Cheese really wanted the correct honest answer I would have thought that he
>> might have provided more detail. I fancy he doesn't want to be seen as wrong.
>>

You fancy wrong.

It was a hypothetical conversation, that went - with no contract the contractor can walk out any time, though if so the customer can kick them out any time - unless the submission of a quote, the acceptance of the quote and the commencement of the work constitutes a contract.

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Sun 9 Apr 17 23:34

When is a contract formed? - Hard Cheese

Yep, back for the first time in five years a month or so ago, and user name changed a few days ago ...

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Sun 9 Apr 17 23:42

When is a contract formed? - MD

Is that and Estimate or Quotation? O:-)

In reply to the post immediately above.

Last edited by: MD on Sun 9 Apr 17 at 23:44

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Sun 9 Apr 17 23:50

When is a contract formed? - Hard Cheese

>> Is that and Estimate or Quotation? O:-)
>>

Quotation.

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