QUESTION

How does a contract differ from a service invoice?

Asked on Apr 12th, 2016 on Breach of Contract - North Carolina
More details to this question:
I own and operate a auto body repair shop that does collision and vehicle restoration repair. We prepare estimates of repair work and those estimates include all related work to be performed to a customers vehicle and at the bottom it lists our terms and conditions that cover the scope of our business, expected payment terms and describes the mechanics lien laws local to our state if payment is not satisfied. Our clientele are very good people however there's always that one bad apple. Is it required by law to obtain a signature from both parties (the customer and the shop owner) to be legally binding and to begin work on a vehicle? or is it sufficient to obtain the customers signature only for work to begin? and if so, does the court view this document as a contract or as a work order?
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1 ANSWER

Appellate Practice Attorney serving New York, NY
A contract is simply an enforceable agreement, thus an invoice or work order to which all parties have agreed is a contract (although it should be clear that it is a binding agreement; if it says something like "this is an estimate only", there could be problems).  The same defenses applicable to any contract are applicable to it, e.g. it was signed under duress, it was procured through fraud, one of the parties lacked capacity, the terms were not sufficiently clear and definite, etc. etc. Most contracts do not have to be in writing to be enforceable, although it is obviously much easier to prove the existence and terms of a contract if it is in writing.  Even where a contract needs to be in writing, however, it is generally sufficient that the writing be signed by the party to be charged.  In other words, if you are suing the customer for breach of contract, it would probably be sufficient that he/she/it had signed; your signature would not be required, but would be required if the customer were suing you (although your letterhead on the top of the invoice would likely be sufficient). In some cases, a statute requires that a particular class of contract must be in writing signed by both parties, e.g. a prenuptial agreement.  The agreements you're talking about don't appear to fit in this category, but I am not a North Carolina attorney and so can't be sure.  More often, the parties themselves do not agree to be bound unless both parties sign, and this is usually reflected in the writing itself.  Thus the document itself will state that there is no contract until and unless both parties sign.  In such a case, both parties would need to sign before a contract is enforceable.
Answered on Apr 13th, 2016 at 10:18 AM

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