Businesses and individuals who have incurred expenses and performed services for others but have not entered into a formal contract may still be able to recover monies under a theory of quasi-contract theory.
In a recent unpublished decision an architect was approached by a synagogue in connection with the synagogue’s plan to purchase an adjoining movie theater with the goal of converting it into a part of the synagogue. There were numerous discussions and the architect had sketched out a number of drawings and plans. However, there was no formal written agreement between the parties. The synagogue eventually decided to utilize the services of another architect to complete the project. The original architect submitted an invoice to the synagogue for $17,000.00 to cover the preliminary work and drawings done. The synagogue refused to pay. The lower court agreed with the architect that although no written contract had been in place there was a quasi-contract for which the architect was entitled to recover payment. The synagogue appealed and the appellate division affirmed the lower court’s ruling.
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