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Question DetailsAsked on 3/29/2018

Texas - contractor backed out of roofing contract I signed. Do I need a letter cancelling contract?

I became concern because contractor wouldn’t give me a formal quote or any details regarding project and work to be done. They just wanted to work off the insurance claim – which is rather generic and wanted me to give them the funds from the claim in order to schedule the work. I voiced my concerns, but I did give them a check to get started and they agreed to do so. Two days later, they called saying they are backing out and returned my check, but nothing else. I'm ok with it, though not looking forward to finding another contractor. However, I do have questions.
No work has been done or scheduled, except a sales person meeting with the insurance adjuster, but since I signed a contract - do I need to get a cancellation or termination letter? Since they are backing out and returned the check, does that make the contract null & void? Is there any reason for me to be concerned? Thanks in advance for your help.

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Voted Best Answer

Contract is not automatically null and void - though if he backs out, it is voidable by you, but takes action to do that.

Presumably you do not want to try to holdhim to the contract, even if you could - last thing you need is a contractor who does not want to do your work on the job, especially since he may have realized he underbid, so trying to force performance (if you could - dubious) he would be looking to cut corners to save cost.

I certainly would try to get it in writing - you could arrange with the contractor to meet him somewhere, each with their signed original contracts, and sign an Amendment (labelled as such) which states the contract is Voided at no cost to either party, dated and signed by both on both copies, each keeping their signed original. Best if marked and signed/date4d by both parties on the actual contract, but if not enough room then on attached page specifically referncing the contract by the names of the parties (his company's and yours) and the date of the contract and the title of the contract (or if untilted then something like "Roofing Contract for xxx address dated xxx" to definitively tie the amendment to that specific document by clear and unambiguous reference.

Would also be very good idea to get a Lien Release or Lien Waiver filled out with job name and jobsite address and such and signed and dated by the contractor for your files.

Of course, be sure the refund check (if he gave you a refund check rather than your actual undeposited check) clears - give it at least 3 business days to clear or potentially bounce.

If he refuses, then keep copies of the check (or maybe original since it sounds like he gave the actual check back) he sent and send him a certified, return receipt, signature required letter stating he has refused to sign a voided contract, but because he has returned the checkk and told you (and keep written documentation, copy of eMail or texts or whatever on that) he is not going to do the job, you are cancelling the contract for non-performance. And of course keep copies and mailing receipt and return receipt card and such. Would be best if that letter were notarized as well.

Roofing is of course the Search the List category to find additional well-rated and reviewed roofers to bid your job.

You can find a number of previous questions with answers about insurance claim roofing jobs, ,which might help forearm you, in the Home > Roofing link, under Browse Projects, at lower left.

And be sure to explain to the insurance company (in writing) the situation and that he is not your contractor because he backed out (so he cannot claim the insurance check using the contract or a copy of it), and that you will be getting another one for the repairs.

Answered 2 years ago by LCD

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