Elements that make up a contract Law Offices of Fred M. Duman & Associates 2807 Castro Valley Boulevard     Castro Valley, California 94546 Tel: (510) 537-3388 Fax: (510) 889-1114

Dear Mr Duman:

My neighbor and I had an agreement to split the cost of replacing the concrete sidewalk, which divides our property.   He told me to "go ahead and have it done" and that he would reimburse me for his half of the cost.

After I had the work done, he refused to pay me for his half, and he is denying that we ever really had an enforceable agreement.

Do I have grounds to sue him in small claims court for half the expense of the concrete work?

V.L., Oakland

Dear V.L.:

Your ability to prevail in court with your claim against your neighbor, based on the law of contract, will largely depend on your ability to prove that an enforceable contract, in fact, existed.

General contract law requires that, for a basic valid contract to exist, there must be an "offer", an "acceptance" of that offer, and "consideration" given to bind the offer into a contract.
An "offer" consists of some form of communication from the "offeror" to the "offeree", which sets forth the basic terms of the proposed agreement.  In your case, an example would be "I will pay for half of the construction of the concrete sidewalk if you will pay for the other half".

The offer is deemed to be accepted, when the offeree communicates his/her assent to the offeror's terms, before the offer is revoked by the offeror.

In order for a contract to be enforceable, it must be supported by sufficient "consideration".  "Consideration" is anything of value that is a benefit conferred upon the party, who is to perform, when there is no legal obligations to do so, or when a party suffers a detriment in reliance on the other party's promise.  In your case, the benefit that was conferred upon your neighbor by your construction of the concrete sidewalk would seem to constitute adequate consideration to bind a contract between you.

 In addition, there are also certain equitable factors in the agreement, which might lead to the enforcement of an agreement, even where all the essential legal requirements have not been met. For instance, enforcement can occur, when it is shown that some action on the part of the offeror caused reasonable reliance by the offeree on the validity of the agreement, and such reliance led to some detriment to the offeree.  In your matter, you undertook the bother to arrange for the work to be done, and you incurred the cost of the work in reliance of your neighbor's promise.

In addition to your claim, based on contract law, you may also have some rights arising out of the fact that the concrete sidewalk lay within an easement.

When our readers are confronted with a contract dispute of substance, it is wise for them to consult with their attorney, who will be able to review all of the details of the dispute and give appropriate advice.

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