QUESTION

I don't have a total contract amount, is my contract unenforceable because of lack of terms?

Asked on Sep 26th, 2013 on Contracts - California
More details to this question:
In my contract with a design work client I have a section called "terms", there is a subsection that states "Payment Schedule: $XXX upon project commencement, $XXX a month will be invoiced for the period of 12 months." in place of those X's is an actual dollar amount. I also have another subsection under "terms" that states "Payment Terms: Payment due Net Fifteen (15) days from issuance of invoice. A one and one half (1.5%) monthly service charge will be billed against late payments." I am being told by my clients attorney that my contract is "unenforceable because lack of terms" stating it "provides for no dollar amount as to the total contract amount" Is my contract unenforceable?
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1 ANSWER

Appellate Practice Attorney serving New York, NY
If I understand you correctly, the contract states a deposit amount and then a monthly amount, which you are to be paid for the succeeding 12 months, and your question is whether the contract is too indefinite to be enforced because the arithmetic to set forth the total amount was not included in the written agreement.  While I am not familiar with California law specifically, if this is the only issue with the contract, I don't see it as an issue.  There are many contracts like this.  When you rent a car, for example, the contract provides that you will pay a certain amount per day.  The same when you stay at a hotel.  When you hire a catering  hall for an affair, you agree to pay a certain amount per guest (with a guaranteed minimum.)  Employment agreements may provide for a certain amount of compensation per hour, or even by work done (i.e. $20 for every bushel of lemons picked.)  The terms are clear.  If you agree to pay $100 per plate and you have 100 guests, you owe $10,000; if you have 120 guests, you owe $12,000.  If you agree to work for someone for $10 an hour, and you work 10 hours, you are owed $100.  There is no need to do the multiplication in the contract itself. 
Answered on Sep 27th, 2013 at 11:47 AM

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