Oral AgreementsThomas Tripodianos
January 11, 2011 — 360 views
Question. Does a general contractor waive the requirement of a signed formal written agreement by verbally awarding a contract to a proposed subcontractor for a particular price and verbally instructing a proposed subcontractor to proceed with its work according to an expedited schedule? A preliminary term sheet previously supplied by the contractor to proposed subcontractors specifically addressed such an occurrence of events and provided that such events would not give rise to liability against the contractor, the contractor did not make any statement, either written or verbal, expressly waiving that condition, and the contractor otherwise did not engage in any conduct inconsistent with its reliance on the term sheet.