What constitutes a breach of contract?

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What constitutes a breach of contract?

I am an independent contractor and I install flooring. Each contractor I work for takes a $2,000 to $3,000 retainer that they are supposed to return a year after my last install for the company. I recently contacted a company, by phone and fax, about returning my retainer. The accountant said that the company used the retainer to replace a floor, which is understandable, but they have not provided any proof or paperwork. I think the company should be responsible to provide evidence of the expenditure but they have refused to respond. Does this constitute a breach of contract and do I have any option?

Asked on January 30, 2015 under Business Law, North Carolina

Answers:

Anne Brady / Law Office of Anne Brady

Answered 6 years ago | Contributor

Whether the contractor is in breach of contract depends on what the contract says.  If the contract says the contractor must provide proof of expenditure of the retainer and the contractor does not provide proof, then the contractor is in breach.  If the contract is not in writing, then it will depend what was said about such things, if any, at the time the arrangement was entered into.


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