What are my rights/obligations if I typed a document based on a quote from a body shop stating I would accept a set amount as payment in full for damages caused by an accident?
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What are my rights/obligations if I typed a document based on a quote from a body shop stating I would accept a set amount as payment in full for damages caused by an accident?
The document also stated I would accept payments of $25 for 6 weeks, and at least $50 per week after that until the total was met. The person who was involved came to me today saying they could not make the payment this week and wanted me to wait until next week. Does this break the contract since the person is not able to make a payment this week?
If so, I want create a claim with my insurance. I will refund any past money the person has given me. What needs to happen for me to prove to my insurance the contract has been broken?
Thank you
Asked on November 12, 2015 under Business Law, Indiana
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 8 years ago | Contributor
1) If the person signed the document or otherwise clearly and convincingly demonstrated that he/she agreed to it, then missing a scheduled payment is a breach of contract.
2) You can bring a claim to your insurer without refunding what you have received; any amounts you would get from your insurance will be offset or reduced by what you receive from the other driver. You will need to present a copy of the agreement, bank statements, deposit slips, copies of checks, etc. to show what you have--and have not--been paid, so they can make the appropriate adjustments.
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