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I will illustrate my question as follows; Firm A has 1 ream

Resolved Question:

I will illustrate my question as follows;

Firm A has 1 ream of paper in its stocks and Firm B is selling this 1 ream of paper to another firm (Firm C) for Firm A. The payment should be paid to Firm A and because of this; Firm B writes a note on the invoice with saying that:

"This invoice has been irrevocably assigned to Firm A and the full amount is payable to below Firm A’s account only. Title of goods remains under Firm A until the full amount has been paid."

Firm C acknowledges via email saying that it received the invoice.

Firm A has not issued an invoice to Firm B yet and Firm B forces Firm A to issue the invoices of the sold goods. However, Firm A does not trust to Firm B; hence they want to wait until the payment is done and then they want to issue the invoice to Firm B.

My question is, can Firm B change the issued invoice (which says the payment should be done to Firm A) and issue a new one at a later date and excluding the "payment to Firm A" part and getting the whole payment to itself? Is it legal? Or since they already issued an invoice, is it impossible to issue a new one?

Thank you and best regards
Submitted: 1 year ago.
Category: UK Law
Expert:  Senior Partner replied 1 year ago.
Thank you for your question. Once an invoice has been issued and notice of assignment given then firm C can only pay firm and and if they pay firm B they will remain liable to firm A. Such notices are normally put on factored invoices. C cannot get a good discharge to the debt by paying B.
Customer: replied 1 year ago.
So, even if Firm B issues another invoice saying that the payment should be paid to itself, not to Firm A, Firm C will be still liable to Firm A?
Expert:  Senior Partner replied 1 year ago.
Correct once firm C has notice of the assignment it can only pay A unless A agrees otherwise and if it actually pays B it will still owe the money to A .
Senior Partner, Solicitor
Category: UK Law
Satisfied Customers: 13231
Experience: 30 years experience in business law and related topics such as employment law
Senior Partner and other UK Law Specialists are ready to help you

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