A contractor who provided services to the city without an agreement will not receive full compensation for his work

A city refused to pay a contractor who supplied services to it, due to lack of a written agreement duly signed by the authorized signatories.
The Court ordered the city to pay the contractor consideration for its work, but less than the expected contractual consideration. Services to a local authority require the existence of a written agreement approved by the authorized signatories. This is a material and not a technical requirement, in the absence of which one may forfeit the right to receive full consideration. Grant of proper consideration, despite the lack of a written agreement, may be made in very exceptional cases, taking into account, inter alia the good faith of the service provider and the local authority; The extent of the negligence of the local authority and whether it made a false representation that the engagement was sufficient to oblige it. Here, the contractual engagement was based on a price proposal, without due process. Nevertheless, the contractor provided extensive service, reported to the City about its activities and performed the work faithfully and diligently, while authorized officials were well aware of its actions in real time. Thus, the contractor will receive an amount lower than expected but proper for the work done