October 1, 2007

EDITOR'S NOTES

Oral agreements—are they legal? Do they stand up in court? It depends. This week, we look at two such agreements. One is binding. The other is not. In the first, a subcontractor circumvents a non-paying prime contractor by making a verbal agreement directly with the owner for payment. When the owner doesn’t pay up, the subcontractor sues and wins. In the second, a verbal agreement between the prime contractor and its subcontractor fails because the prime’s contract contained a clause precluding verbal agreements.

In an unrelated topic, evolving communication technology can wreak havoc on notification requirements for public agencies. Does an online posting of a change in a prevailing wage statute satisfy the agency’s duty to notify its contractor of the changes? In this case, no. A more concerted notification is needed, says the state appeals court.

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