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Ellen
Ellen, Attorney
Category: Business Law
Satisfied Customers: 36714
Experience:  25 years of experience helping people like you.
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products my company had sent out to a municipality were delivered

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products my company had sent out to a municipality were delivered to the wrong address without my knowledge. the municipality was billed for the goods over several months, the invoices were paid in full. It was brought to my attention that the goods had never been received. My company policy is all sales are final, and I made the municipality aware that they have a full credit for the money they paid and I would send out the product to them the next day. They told me they do not want the product and are threatening to take my company to small claims court. I do not want to re-emburse them money, as I have offered to replace the product or give them a full credit towards future purchases.
Submitted: 7 years ago.
Category: Business Law
Expert:  Ellen replied 7 years ago.
What is their argument for not agreeing to the new shipment? Did the delay harm them in some way? Did they need to mitigate their losses by immediately acquiring the product elsewhere?
Customer: replied 7 years ago.
Their argument is saying that the person who ordered the product from me never did so, and that they have no need for the product. I sold product to the public works foreman, and Im being told this by the city manager. They keep saying that they never issued a purchase order number to me for the product, yet they paid me over $3000 over several invoices. They sent me a certified letter from their state of colorado, to me in new york, stating that if I do not mail them a full reimbursement check they will file a claim in small claims court.
Expert:  Ellen replied 7 years ago.
Hello,

You appear to have a strong defense to their action. You may consider filing a collection action against the city for the balance of the payment. Here is why.

They put the foreman in the position of authority to act for the city. Because the foreman appeared to be acting for the city, he had what is called in legal terms "apparent authority to bind the principal". The principal in this case is the city.

Accordingly, he may consider filing a breach of contract action against the city to collect the balance due on your contract and to recover your court costs and attorneys fees.

Good luck.
Customer: replied 7 years ago.
They do not owe me any money. Should I just retain the credit on hand and if they choose not to use it, its their loss? What would be the worst case scenario if they filed a claim against me in small claims court in colorado, when I live in New York? Would there be anything they could do to me?
Expert:  Ellen replied 7 years ago.
Hello,

You can retain the credit on hand. However, if they did not pay in full, you may not be required to give a credit. Instead you may file suit for the balance.

If they file suit in NY, you would need to defend the suit. If you do not, a default judgment would typically be issued. They could then enforce the default judgment in NY.
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