ORAL CONTRACT IS NOT ENFORCEABLE – WARNING TO HOME OWNERS AND BUILDERS/TRADESPEOPLE/HANDYMEN ALIKE

Monday , 16, November 2015 Leave a comment


ORAL CONTRACT IS NOT ENFORCEABLE

WARNING TO HOME OWNERS AND BUILDERS/TRADESPEOPLE/HANDYMEN ALIKE.

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CASE : Nichols v Earth Spirit Home Pty Ltd [2015] QCA 219.

Since the various State Governments have legislated that building works MUST be reduced to a Written Contract[1], the Courts have taken that if you are committing an offence (under the Act in not having a written contract) the Contract is not enforceable.

HELD: Appellate Tribunal correctly found oral contract not unenforceable due to fact respondent committed offence by entering building contract which was not reduced to writing.

This has implications both ways if you are a Builder, Tradesperson, Handyman you may not get paid for the job and even worse you may be charged under the Act for an offence and fined.

On the side of the Home Owner it gives you little security knowing the contract is not enforceable either, should a dispute develop it can leave you with a very tricky situation.

SOLUTION:  Always insist on a written contract.

[1] Queensland Building and Construction Commission Act 1991 (Qld) and public policy – ss67E(2) & 67G



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