Lumley v Foster – the danger of oral contracts and contracting with the correct entity – Practical Law: Construction Blog
‘Despite the volumes of case law illustrating the dangers of not having a written contract when carrying out a construction project, it is still common practice, particularly for smaller domestic projects and in this current market where builders are in high demand, for parties not to have a formal contract. Nine times out of ten all will be absolutely fine: works will progress, any small issues will be amicably overcome between the parties, the project will complete and everyone will be satisfied with the result. But construction projects can be uncertain beasts. Every now and then, things won’t run so smoothly. There may be defects, delays, cost pressures, design changes, or any variety of unforeseen issues. This is when not having a written contract to fall back on can become a real problem. The case of Lumley v Foster is a good reminder of what can happen if a written contract is not put in place.’
Practical Law: Construction Blog. 9th March 2022
