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Andrew Thompson
Andrew Thompson, Attorney
Category: Business Law
Satisfied Customers: 5
Experience:  22 years experience as a business attorney, public accountant and business consultant
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I have a company that I am doing business with. The partners

Customer Question

I have a company that I am doing business with. The partners are splitting up and want me to split the payment to them in half(50% each). Is there a clause I can implement on the receipt that does not hold me liable?
Submitted: 7 years ago.
Category: Business Law
Expert:  N Cal Attorney replied 7 years ago.
Why not write the payment to the company and let the 2 of them fight over it or split it or whatever they want without asking their customer to do this. You hired 1 company and you should be able to write one check with payment in full written on the memo line.

You didn;t ask them to split up, this is their problem not yours. I would tell them to take 1 check and do whatever they want with it. This sounds very unusual and I would resist their request.
Expert:  Andrew Thompson replied 7 years ago.

When you make payment to the party that has the true, apparent, legal authority to bill you and receive your payment, you have fulfilled your part of the contract. Because they could bring you into a dispute, however, I would require the recipient to sign a "hold harmless" provision requiring him or her to guarantee that you will not be held liable if the other party claims the payment was owed to him/it/her. You could also ask for indemnification of your costs if you are brought into any litigation over the payments you make.

 

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Andrew Thompson, Attorney
Category: Business Law
Satisfied Customers: 5
Experience: 22 years experience as a business attorney, public accountant and business consultant
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