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Business lawyer
Business lawyer, Attorney
Category: Business Law
Satisfied Customers: 418
Experience:  J.D., Magna Cum Laude, University of Alabama. Judicial Clerk for Supreme Court of Alabama 2004-2005
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Im an owner of a small custom t-shirt (printing) company.

Customer Question

I'm an owner of a small custom t-shirt (printing) company. Recently I landed a large job. I've had it about a month- all of the prep work, color seperation, trancparencies, all screens are burned, and 1/2 the order is already printed. I just have 1/2 to print and it's done. There's a detailed invoice that was signed by both parties before I started any work on the job and they paid 1/2 up front. They told me they want to renege whats left on the printing. The reason they gave me was that they didn't do the math before they ordered and they're not going to get they're money back. Problem is I've invested a month of labor into this and turned down some business as well bc I was full up with this deal. There is a signed invoice. Can they legally pull the plug? The main question I need answered is do I have some legal ground for protection from a renege and the signed invoice?
Submitted: 7 years ago.
Category: Business Law
Expert:  Business lawyer replied 7 years ago.
You absolutely have a legal cause of action. It is called breach of contract. Essentially, they entered into a contract with you, you performed your portion of the contract and they are refusing to honor theirs. So they are liable for the second half of the payment. You may be entitled to lost profits from the business you had to turn down.

It does not appear to me that they have anyway to legally terminate the contract without paying for the other half of the contracted terms.

You need to find a commercial litigation attorney and file suit against the company. This should be fairly inexpensive as this is a simple case. You can find one by googling "small business commercial litigation lawyer (your town and state). Call several and go meet with the one you feel comfortable with.

I hope this helps to point you in the right direction.
Customer: replied 7 years ago.
Thank you. What are some ways that would be valid for them to terminate contract?
Expert:  Business lawyer replied 7 years ago.
Unless there is a written termination clause, they cannot terminate the contract unless you are filing to perform or you are providing them with poor quality merchandise that does not live up to the standard of the agreement.
Customer: replied 7 years ago.
Ok. Last reply-lol. That's not the case but with what they're trying to pull it wouldn't suprise me one bit if they tried to say that. I still have the computer files of all the images and the originals of some of the images that they told me to print and the shirts they recieved looked as close to the same as you could get with a silkscreen- quality is good on all that they recieved. Would those be a good way of proving my case if it came to that (I know this is for informational purposes) or would I need a lot more than that- as far as they are in good condition and quality for the service that I provide?
Expert:  Business lawyer replied 7 years ago.
This is what is called a "question of fact" in legal jargon. Meaning that it is an issue that must be decided by a judge or jury if you go all the way through the process and have a trial. You can prove that they are of good quality in several ways. You need to keep examples of the t-shirts, you will be able to testify what is acceptable in the T-shirt industry and you might want to get another professional to testify that the shirts meet the industry minimums.

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Customer: replied 7 years ago.

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