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BartEsq
BartEsq, Researcher
Category: Business Law
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Experience:  Juris Doctor
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In 2011, our advertising agency contracted for services by

Customer Question

In 2011, our advertising agency contracted for services by a third party. The dollar amount of the services was $14k. Our company did have a relationship with the advertising company but not with the third party and our company never signed a contract with the third party for these services (I do not know if the agency signed a contract). In Sept of 2011, the third party apparently invoiced our advertising agency for services rendered. The ad agency never paid the bill nor did they inform us of this bill that would be due and payable to the agency or the third party by our company. Our company asked our ad agency in writing to detail any outstanding bills/invoices for 2011 as we needed to close our 2011 books. The agency again never informed us of this invoice or any other invoiced outstanding and never provided proof of performance. Now, in March 2012, we are being contacted by the third party who is demanding payment from our company even though they invoiced the ad agency for their services. The agency is not taking any liability.

What are my company's legal obligations and options?
Submitted: 2 years ago.
Category: Business Law
Expert:  BartEsq replied 2 years ago.

bart0358 :

Hello, I'm researching your answer now.

bart0358 :

Under the circumstances, if there is nothing in writing, I see no relationship between you and third-party. Quite frankly, I would not accept liability for this invoice. They can ask you for it all they want, but they really have no standing to hold you liable in front of a judge.

bart0358 :

If you feel is legitimate, some to you how and when to pay it. But it doesn't sound like you are liable for a dime.

bart0358 :

I hope this helps, let me know if you need anything else. Please remember to accepted this answer was useful so I can get credit for my work.

Customer :

So, as the agency was billed by the third party, would the agency have to pay this invoice to the third party first before trying to collect from our company?

Customer :

The issue is that the third party just called and told us that they were going to sue us for the money even though they do not have a contract signed by us and even though they billed the agency. Can they simply bring this suit without a contract?

bart0358 :

Not typically, but any lawyer worth his salt will find a way to get into court. Whether the claim succeeds is another story. If you did not recieve goods or services from them, I do not see how they can have a successful claim.

bart0358 :

Sounds like scare tactics.

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