Terminating a Contract with an Architect/Contractor: Can You Sue for a Refund? A Question-and-Answer Guide on Philippine Law
Question: We hired an architect/contractor who did not make any construction progress despite receiving payment. We terminated the contract and asked for a refund, but he refuses. Can we sue him?
Answer:
Failure to deliver on a construction project by an architect/contractor is a serious issue that may result in legal consequences. In the context of Philippine law, there are specific avenues you can take to address this concern.
Is Termination of Contract Allowed?
Contracts for construction services usually specify conditions under which either party may terminate the agreement. If the architect/contractor's delays were against the terms set in your contract, you generally have the right to terminate it.
What About Refunds?
The issue of refunds would also likely be governed by the terms of your contract. If there are no clear stipulations about refunds in case of delays or termination, general principles of contract law under the Philippine Civil Code may apply, such as "rescission" for failure to deliver on obligations.
Can You Sue the Architect/Contractor?
If the contractor refuses to comply with a valid demand for a refund, you may have grounds for legal action. Here are your possible courses of action:
Demand Letter: As a preliminary step, send a formal demand letter requesting a refund, as this can later serve as evidence.
Civil Case: File a civil case for breach of contract and ask for a refund along with possible damages. Documentation of the delays, any correspondence between both parties, and proof of payment will be crucial.
Alternative Dispute Resolution: Depending on your contract, you might be required to engage in mediation or arbitration before resorting to a civil case.
Criminal Case: Depending on the circumstances, the architect/contractor’s failure to deliver may also constitute estafa, a criminal offense under the Revised Penal Code. However, this is generally harder to prove compared to a civil case for breach of contract.
Conclusion
You can indeed sue an architect/contractor for failure to deliver on their contractual obligations, especially when substantial payments have been made. The route you choose to take—civil case, or possibly a criminal case—will depend on various factors including the terms of your contract and the severity of the breach.
Disclaimer: This article is intended for informational purposes only and should not be construed as legal advice. Consult a legal expert for advice specific to your situation.