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Hi, thanks for your question. You should hire a lawyer for specific legal advice. No attorney client relationship is created here.
I assume your contract has a clause regarding a possessory lien on the items until invoice is paid.
Possession is 9/10ths of the law as they say, and since it is all in your name, you can hold the items
If your contract has delivery terms, you should comply with them.
You would be best to discuss it with the client, as you don't want to burn any bridges, and you don't want to be stuck with the inventory either.
You will have a mechanics lien on the items until paid, yep.
Let me know what questions you have
hello, thank you. The contract is for our business agreement, not the inventory. He is refusing to pay for past sales after my last invoice, however he has paid two times previously. He is saying that he's thought about it, changed his mind, and now does not want to pay for my part of the sales.
Because we don't have an explicit agreement about this inventory and the items to arrive are in my name, I want to hold the items until he pays. some of the items, however, are due to our distributor and I must send them out and invoice the distributor for them. So... I can hold the items and even sell them? Our business contract says I have control over distribution.
Each contract goes on it's face, so if there is no contract for sale for the new items yet, you can hold them.
Obviously if you have other agreements with distributors, you should honor those agreements
Do I need to file an official 'mechanics lien'?
Read your breech of contract clauses, and move on those for the lack of payment
There are no breach clauses other than arbitration.
You can check with your local state office to file a lien sure, to protect yourself.
Each state varies under the UCC on what constitutes a lien, so talk to a local attorney to properly protect the assets for your
When the money is sent from the distributor, do I hold that money until he pays, or can I take what i am owed out of that money?
"until the client pays"
I cannot advise you on that, as it would be giving legal advice
which we are prohibited from doing here, sorry
Ok. Thanks very much.
Got it. thanks. :0
talk to your corporate lawyer, they can definately look out for your best intersts
The system is prompting me to rate you again.
Follow-up question: regarding my previous question, I'm worried there was some ambuguity. I have a business contract with my client. I do not have an explicit contract for the inventory in question. The inventory is to be delivered in my name, but my client is the one who paid the manufacturer's invoice. All the goods are in my name, the manufacturer's invoice was in my name, as well as the customs forms, however.
I want to hold the inventory until the client pays MY invoice--what we have contracted for. He has refused. In that case, can I withold the inventory until he pays me? And who "owns" the inventory?