If I have a signed contract to have insulation put in my home, what are my rights to the original contract price if the owner now says that it will cost more?

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If I have a signed contract to have insulation put in my home, what are my rights to the original contract price if the owner now says that it will cost more?

The salesman and I signed a contract. When I mailed the deposit in with my signed contract, the owner said the salesman made mistake. It was for $2100 but now he said it will be $8000. He mailed my deposit back. What are my options for breach of contract? Can I force them to honor contract or sue for damages?

Asked on November 21, 2014 under Business Law, Massachusetts

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 6 years ago | Contributor

Yes, if you signed the contract and sent in the deposit, they are obligated to it unless 1) the facts or circumstances changed in some signficant or material, which--depending on the exact change--may allow them out of the contract due to, for example, the now-impossibility of performing as contracted; 2) the contract itself allows them to cancel the contract under certain circumstances, which circumsances exist; or 3) you lied (committed fraud) in getting them to enter into the contract.

Of course, if they refuse to honor the contract, you'd have to sue them for breach of contract, which has its own costs and takes time.


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