Home Improvement & Contract Laws In NYC

You’ve been wanting to start a renovation project, and you’re in the Big Apple, but now you’ve got no clue where to begin. More importantly, do you know the contract laws for home improvement projects in the State of New York?

Obviously, contract law exists to protect both contractors providing a service, and the people who hire them for that service’s provision. They are essential to good business conduct, and a safety net for both parties to know what they are agreeing to and what to expect in accordance with that agreement. However, oftentimes people contract into agreements that might not actually be enforceable ones and when considering how that may apply to your project it is something that being educated in can ultimately make you or break you.

If you don’t have a clue about NY contract law, but somehow find yourself needing to, then here’s your first educational resource.

Let’s talk about the basics when it comes to New York City and Contract Laws.

Jumping in, let’s tackle the Top 10 Most Important Contract Laws in NYC:

First, a preface for this with saying that NYC law is both complex and constantly evolving, but these are some of the fundamental laws that are particularly relevant:

Now, let’s talk about the UCC – Uniform Commercial Code:  A comprehensive set of laws that govern commercial transactions including the sales of goods, leases and negotiable instruments.

Next, Statute of Frauds: a New York law requiring certain contracts to be in writing to be enforceable, such as those involving the sale of real estate or contracts that cannot be performed within a year.

Then, Parol Evidence Rule: a New York rule generally prohibiting the introduction of extrinsic evidence to vary or contradict the terms of a written contract.

Moving on to, Breach of Contract: When a party fails to perform their obligations under a contract, they may be in breach. The remedies for breach can include damages, specific performance, or rescission.

Next, Contract Interpretation: Courts will interpret contracts according to the intent of the parties as expressed in the language of the agreement.

Then, Assignment and Delegation: Contracts can generally be assigned to third parties, but delegation of duties may be subject to certain restrictions.

Next, Conditions Precedent and Subsequent: These are events that must occur before or after a contract is performed.

Next, Time is of the essence: This clause can make timely performance of a contract a critical element.

Then, Force Majeure: This clause can excuse a party from performance due to unforeseen events beyond their control, such as natural disasters or acts of war.

Finally, we have, Choice of Law and Forum Selection: These clauses can specify the governing law and the jurisdiction where disputes will be resolved.

Now, we need to dissect what the typical process for a contract being set up looks like.

For a contract to be binding and legal in the State of New York the following must be met –

• Offer – A party proposes terms of the agreement (contract.)
• Acceptance – The receiving (other) party accepts those terms (a counteroffer is not an acceptance).
• Consideration – Something of value like goods, services, or money must be exchanged.

In addition to this, Contracts can be packaged in different forms such as Express, Implied-in-fact, and Quasi-contracts. This is why speaking with a A New York business law attorney is advisable as a lawyer can more thoroughly explain the various types of contracts recognized in the state. But in general, they must contain the above elements to be valid and enforceable.

Another thing to know is that while contracts can be oral, there are some that must be in writing. This is required under the Statute of Frauds and in New York these following types of contracts must be written in order for them to be considered enforceable:

• A contract for the sale of goods of $500 or more
• A contract that will take more than one year to perform
• A contract involving the sale or lease of real estate
• A contract in which one party assumes responsibility for the financial obligations of someone else
• A contract involving a promise to pay a debt discharged in bankruptcy
• Some contracts made in consideration of marriage
• A contract involving a promise to make a testamentary disposition

While this is certainly not the entirety of laws that govern contractual agreements in the State of New York, this general overview gives an idea on how specific contract laws may apply to individual contractor agreements. Of course, cases and laws may vary depending on the nature of an individual contract and circumstances involved. For this reason, it is always advisable to contact a legal professional or attorney for information relevant to a particular situation.

With this information, however, your next step would be to begin searching for the contractors who are well-reviewed with consistency regarding their career fields. There are multiple places you can gauge a contractor’s capacity such as the Better Business Bureau, Angi, Houzz, the National Association of the Remodeling Industry, and the National Association of Homebuilders. If you still have questions about a contractors’ honesty, skills and history you can also ask for references from former clients, family members and friends. The best thing to do is check on a contractor’s licenses, and insurance as these are good indicators of them being ethical workers who take their craft and the law seriously.

Another thing to keep in mind, is asking for estimates and conducting your own research and interviews with the company before you determine who you are going to hire. Ethical, law-abiding contractors are typically transparent, up front about providing quotes or estimates, and more than willing to discuss with a potential client about how various laws apply to any contracts they may undertake. While it may seem daunting, taking the time to thoroughly interview the companies you may end up hiring is the best way to prevent a catastrophe later down the road.