No Contract - No Payment?

Consultants often carry out work for a prospective client before any agreement is entered into. There is a myriad of reasons why consultants may do this. They may be hoping that if they do the work, the prospective client will feel obliged to engage the consultant for the project. Or, they might be busy and "just haven't gotten around" to the formalities of entering into an agreement.

If you don't end up engaging a consultant who has done work for you, do you have to pay? In a typical lawyer's answer - it depends on the circumstances. Normally, if it appears as though the parties had an informal agreement or understanding that the consultant would be paid; the consultant would be entitled to payment.