I got paid to do a job for a homeowner and got paid for materials and labor up front. Then the homeowner had a delay in our work due to no fault of my own. Its been a couple weeks ive been waiting on them to get things straight .

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I got paid to do a job for a homeowner and got paid for materials and labor up front. Then the homeowner had a delay in our work due to no fault of my own. Its been a couple weeks ive been waiting on them to get things straight .

Now they are asking for the money back
to pay legal fees to sue a contractor.
What can they do to me? I dont have all
the money to give back because i had to
use some to do other jobs.but would
complete their job when i was finished
with these jobs?

Asked on May 23, 2017 under Business Law, Tennessee

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

They cannot cancel the job unless your contract with them allowed for early cancellation, in which case they could cancel in accordance with the early cancellation/termination terms (but not otherwise). But without a specific contractual right to early termination or cancellation, they have no right to cancel the job and are not entitled to money back. (Even if they did have a right to cancel, you'd typically be able to keep any money already spent, unless the agreement specifically provided for a full refund.)


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