Is there a right to cancel a verbal agreement under MI contact law when work has not been started

Contractor overcharging: We have had a contractor make some improvements in our house over the past 3 months. Unfortunately there is no signed contract, only a proposal. In the proposal was a statement that any work outside of scope of proposal would be discussed in detail and agreed upon by both parties. The proposal was broken down by project and did not indicate an hourly rate. Early in the projects he made several offers of as long as he was in the house, if there were small things he could help with, let him know and he can help with them. As it turns out there were instances where either my wife asked or he offered to "help out". My wife was totally unaware that there we were going to be charged for this work and how much it would be, and that he was just helping out as a friend. To me, there was no discussion of all details and agreement to them. I think we have already overpaid several hundred dollars. He claims we still owe him several hundred dollars before he comes back to complete the work. In the meantime, our house remains under a state of construction and it will cost several hundred more to bring in a different contractor to complete. - Is this your question? Add additional information
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Answers (2)

David Alexander Phipps

David Alexander Phipps

Contributor Level 5
I am in California and don't know anything about Michigan law. I took a quick look at the Michigan DLEG websites looking for two answers. I didn't find them, but I found two phone numbers of government agencies where you could ask.

First questions: Is there a three day cancellation period in Michigan applicable to home improvement contracts? In California, the three day right to cancel begins when the contractor gives you written notice of the right. So if the contractor never does give the homeowner the notice, the three day clock doesn't start and the homeowner can cancel at any time.

Second quesiton: Does the law require the contractor to use a written contract? If so, that alone would be the basis of a complaint to DLEG, and probably would mean that you are entitled to your money back.

Also, check on whether the contractor is licensed.

Here is the first DLEG phone number: (517) 241-9202

I think a complaint against the contractor would be best if the DLEG agrees that there has been a violation. The complaint often influences the contractor to make good very quickly in order to prevent the state agency from taking action against the license. Here is a webaite on how to file a complaint:
http://www.michigan.gov/dleg/0,1607,7-154-35299_35395_35396---,00.html

Here is a FAQ about how to file a complaint: "A: Complaints about licensed builders are handled by the Department's Bureau of Commercial Services Enforcement Division. You may contact the Enforcement Division at 517-241-9202, or visit the Builders website at www.michigan.gov/builders and click on "Enforcement & Complaints under "Consumer Info", to obtain a complaint form or learn more about the complaint process." http://www.michigan.gov/dleg/0,1607,7-154-35299_35414_35455-114259--,00.html
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David Alexander Phipps

David Alexander Phipps

Contributor Level 5
I forgot to add my disclaimer:

This answer must not be relied on as legal advice for the reasons posted here: http://davidphipps.com/docs/Disclaimer.doc . And I am not your attorney.

David
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