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1st time this has happened, backing out of contract

Discussion in 'Commercial Snow Removal' started by motodad, Jan 5, 2012.

  1. motodad

    motodad Member
    from midwest
    Messages: 91

    Im not sure how to handle this but I will ask for alittle info from people this might have happened to.

    Ok back in Oct 2011 I was asked to bid a bank (they called me) so I went and bid the lot and walks also talk of lot and walks , well they signed the contract and faxed it back so I put them on our route put them in our system and everything. We salted them 2 times last week and sent the bill out 2 days ago well today I get a call from the bank saying he made a mistake and signed another contract with another contractor and goes on to tell me he is sorry. Now he even made notes on my contract so its not like he didnt know what he was signing. I am held to my contract 100% and any misstakes I make I have to pay shouldnt he have to do the same?
  2. dieseltech

    dieseltech Senior Member
    Messages: 273

    He sure should.
  3. FordFisherman

    FordFisherman PlowSite.com Addict
    from 06611
    Messages: 1,593

    Rattle his cage; have your lawyer call and offer him a buyout of his contract for x amount or you'll sue for the full amount. Did you get paid for the saltings?
  4. coldcoffee

    coldcoffee Senior Member
    Messages: 776

    I'm having a hard time believing that he JUST realized this. Who did he think salted...the salt fairy? Where was the other contractor anyway? Obviously he was a no show.
  5. Peterbilt

    Peterbilt Senior Member
    from IA.
    Messages: 745

    I have a feeling this dry winter is bringing out the low ballers and account poachers.

    Just wait, if another week to 10 days go by with out any snow, or ice threads like this re going to be way more common.

  6. UpstateServices

    UpstateServices Junior Member
    Messages: 25

    +1 on the buyout.

    The seasonal contract is like a lease, and has a commitment of coverage. By returning the contract he has constituted "Acceptance" of the contract and terms. Call a local collection agency and find out what they will buy it off you for.

    Next have your Atty. send a request for full payment and advise that the Legal complaint will be filed and the banks legal dept. will notify the branch manager if he will be subpoenaed for a supporting deposition. (Manager may realize its easier to try to skrew the other guy)

    Normally, your atty. can simply make a motion for summary judgement on a signed contract.

    Last, tell your lawer you can sell it for X, how much more can he gaurantee? When he starts to squirm tell him you will split the difference between X and the amount collected. have him write you up a statement to that fact also.

    Doing busness these days suc ks ass, the more you know the more you leverage a positive result.:gunsfiring::gunsfiring::gunsfiring:

  7. Pristine PM ltd

    Pristine PM ltd PlowSite Veteran
    Messages: 3,794

    I think it is as simple as going into the bank, talking to him. Showing him what your costs per route are, and how you turned down business of X amount because you had agreed to this contract. In a nice way make sure he understands that this isn't as simple as you walking away with nothing at this point.

    Give him a bill for the saltings, the two months of service, and a fair price to walk away knowing that you are losing business because of the new hole in your route. Show him X, and tell him that you think this is fair, and he should pay it, or you are happy to continue service if that works better. I agree, he will probably screw the guy that is less of a hassle.

    All the best,

  8. chesterlawn

    chesterlawn Member
    Messages: 87

    You should let him out of the contract, a bank would never screw you over.
  9. Canplow

    Canplow Senior Member
    Messages: 289

    Ya leave it to a bank like they dont have the money! the scumbags this is why I dont make contracts valid Until I have 50% deposit and 2 postdated cheques for date A and date B being 25% each then they know that money and contract are out and valid. Sounds like that lot will be Double Cleaned all winter! Stick it to the 1%
  10. iceman1

    iceman1 Senior Member
    Messages: 183

    I just want your accounts. I thought we had the best accounts in the country. Well maybe we do in the USA. I might have to get a visa and go to Canada so i can get 50% down and 2 checks for the balance.
  11. rcn971

    rcn971 Senior Member
    Messages: 213

    Post dating checks is illegal and I'm sure if it went to court you would lose.
  12. rcn971

    rcn971 Senior Member
    Messages: 213

    Just saw the Canada location.....maybe legal there.
  13. Pristine PM ltd

    Pristine PM ltd PlowSite Veteran
    Messages: 3,794

    That's not the norm! believe me!!!! Where are you out of Can Plow? In Toronto I have never heard of that, we once were paid a month a head for a condo we took over right at the flower planting season because we told them we needed the money to buy 300 flats of annuals and they agreed, but that was one in a million.
  14. Pristine PM ltd

    Pristine PM ltd PlowSite Veteran
    Messages: 3,794

    Getting postdated cheques is normal, we get them for accounts that are small and pay the same fee every month.
  15. Canplow

    Canplow Senior Member
    Messages: 289

    I will call my self lucky so far every one has agreed to the terms either way their going to pay Im just a 1 truck show so I cant cover the over head and they seem to understand so far. I sure I will be back looking for advise when it doesnt go my way but so far so good thank god because there has been no snow and my money is made on residential driveways per/push
  16. OC&D

    OC&D PlowSite Veteran
    from Earth
    Messages: 3,064

    I'm assuming that was sarcasm.

    I'd stick to your guns with this one. The guys signed a contract with you, and any other contracts he may or may not have signed have no bearing on the matter. It's entirely possible that he's trying to get out of the contract with you because he found a "better" deal. He figures you'll go away easily enough and he can save some money with the lowballer. A contract is a binding mutual agreement between two parties, and he's breaching. Make him pay.
  17. Pristine PM ltd

    Pristine PM ltd PlowSite Veteran
    Messages: 3,794

    Sorry bud, that is the norm for Residential, I thought you were saying it was the norm in commercial.

    For resi's we do 50% upfront and 50% in January.
  18. Canplow

    Canplow Senior Member
    Messages: 289

    no problem I just started with commercial and the deal I worked was 50 25 25 they wanted 50 deposite and 50 end of april so I told them I didnt feel comfortable its a unknown company to me and we worked this deal then picked up another with the same terms . But from the orginal post if a deposite was made Im sure the bank would not have been so negligent.to forget the contract either way a contract is just that
  19. SnowMatt13

    SnowMatt13 PlowSite.com Addict
    Messages: 1,527

    If you want to keep them, go talk to them. If you don't, if it's seasonal tell them you want the balance and you will agree to terminate the contract. If it is a per push/application contract go in with a number based on your area's averages and tell them that is your settlement. Or just agree on a dollar amount period. I wouldn't back down.
    If they signed without realizing what they signed...not your fault.
  20. motodad

    motodad Member
    from midwest
    Messages: 91

    Well today I called the guy that signed the contract left a message at his office and on his cell phone no answer or a return call, I contacted his boss to talk left a message no return call yet. What has me so mad is how the guy lied about how things went down. He told me he caught it when he faxed it but yet on my contract he had 2 notes and at the bottom it said call me, I did back in Oct the day after he signed it explained on his voice mail about his question of the contract. Not 1 call from him since Oct 8 when he called me to go bid this location. Funny thing is this bank is where my personal accounts are aswell as my biz account . Thanks for all the info you all gave Im going to make him a deal, I have a loan thru that bank right now that I have been paying every month, Im going to make him a deal if I dont have to honor my contract with the bank then he dont have to honor his contract with me. Ill let you all know how it turns out.