Business Law

Ask a Business Lawyer. Get Business Law Questions Answered ASAP.

Ask a Lawyer,
Get an Answer ASAP!

Business Law

We entered into a contract to have a food product co-packaged

Customer Question
for our company. The co-packing...
We entered into a contract to have a food product co-packaged for our company. The co-packing company is in Utah. We put an initial deposit down of $16k.

Short story: They kept telling us we were in line to be produced. Then when the time came, they would bump us back. In the end, we were told we would be produced on Dec 9-14. Then a week before our production date, they had to bump us to an undetermined time in Jan. Initially they told us that it was because they could not get our cartons in time. We called the carton manufactur and they said it would not be a problem. We then told the co-packer that we could get the cartons for them.... They then told us they still could not put us on the line, because somebody else was already in scheduled for that time. (we were originally supposed to be scheduled for that time)

Basically we feel that because we are a small new company, they kept giving our production slot to a bigger company.

In Dec, After we got bumped to Jan, we termanited our agreement with the company to package. We went to the packer and picked up our ingredients and asked for a return of our funds. They said we could not have them today, but it they would send them to us next week.

At the end of two weeks, they told us they could not pay us until Jan because they had to reconcile the books. Then in Jan they told us they needed until Feb to pay us because they still werent done with reconciling the books.

Of note: When we termintated our agreement, the company told us they were glad we were leaving, and they did not like working with us.

We have since heard rumers that the co-packing company is in financial trouble. We are wondering if they took our deposit to pay for another company's bill. Also we feel that when they said they could not get cartons, it was because they did not have the funds to pay their bill there. (no evidence other than we have heard the carton manufactures saying they arent being paid).

So it is February and we have yet to see our money back. What recourse do we have? I have done some reading and wonder if we could sue them for fraud? (selling or collecting deposits for something they were unable to deliver)
Submitted: 5 years ago.Category: Business Law
Show More
Show Less
Ask Your Own Business Law Question
Answered in 6 hours by:
2/2/2012
Business Lawyer: Richard - Bizlaw, Attorney replied 5 years ago
Richard - Bizlaw
Category: Business Law
Satisfied Customers: 10,683
Experience: 30 years of corporate, litigation and international law
Verified

bizlaw :

YOu want to sue them for return of your deposit for not performing the contract. I suggest you do this immediately to try to get a judgment and to levy on their assets. If the rumors are true they may file bankruptcy and you would then have to wait a lot longer.


If this answer is responsive to your question, please accept it. That is how we are compensated. I would also be appreciated if you provided feed back on your view of the answer. Finally, if the answer was especially helpful you can provide a bonus. If I can be of further assistance or you have other questions in the future you can ask for me and reach me at this site.


This communication is not intended as legal advice. A local attorney should always be consulted for legal advice. No client/attorney relationship is intended or created by this communication.

Customer:

Is there any chance we could push for fraud charges. I know we could be awarded 3x the amount of damages for fraud.

Customer:

can we sue for more than the $16k that they are holding? I know that if we hire an attorney we will spend a good portion of this just to take them to court. I am also looking at ways to try to settle this out of court. If I could threaten fraud suit, I think that I could get a better response from them.

Customer:

To be clear, I am not trying to get more than they owe us. I just want to find some leverage to make it more benificial for them to settle out of court.

bizlaw :

There is nothing that says you will not tell him that you will include a fraud claim in the complaint which you can do. Whether you will win on that is questionable but you can allege it.


If this answer is responsive to your question, please accept it. That is how we are compensated. It would also be appreciated if you provided feed back on your view of the answer. Finally, if the answer was especially helpful you can provide a bonus. If I can be of further assistance or you have other questions in the future you can ask for me and reach me at this site.



This communication is not intended as legal advice. A local attorney should always be consulted for legal advice. No client/attorney relationship is intended or created by this communication.


Richard - Bizlaw
Category: Business Law
Satisfied Customers: 10,683
Experience: 30 years of corporate, litigation and international law
Verified
Richard - Bizlaw and 87 other Business Law Specialists are ready to help you
Ask your own question now
Ask Richard - Bizlaw Your Own Question
Richard - Bizlaw
Richard - Bizlaw
Richard - Bizlaw, Attorney
Category: Business Law
Satisfied Customers: 10,683
10,683 Satisfied Customers
Experience: 30 years of corporate, litigation and international law

Richard - Bizlaw is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises!

Gary B.Edmond, OK

My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer.

EricRedwood City, CA

I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight.

MichaelWichita, KS

PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent.

Three H.Houston, TX

Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!!

ElaineAtlanta, GA

It worked great. I had the facts and I presented them to my ex-landlord and she folded and returned my deposit. The 50 bucks I spent with you solved my problem.

TonyApopka, FL

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

< Previous | Next >

Meet the Experts:

Infolawyer

Infolawyer

Attorney

1,793 satisfied customers

Experienced lawyer

Dimitry K., Esq.

Dimitry K., Esq.

Attorney

1,611 satisfied customers

Run my own successful business/contract law practice.

MShore Law

MShore Law

Attorney

1,233 satisfied customers

Drafted Negotiated and/or Reviewed Thousands of Commercial Agreements

RGMacEsq

RGMacEsq

Attorney

742 satisfied customers

Licensed Texas General Practice Attorney

Barrister

Barrister

Attorney

640 satisfied customers

17 years practicing attorney, JD, BA, MBA

Ely

Ely

Attorney

564 satisfied customers

Counselor at Law.

J.Hazelbaker

J.Hazelbaker

Attorney

393 satisfied customers

Experienced and trained in the area of business law.

< Previous | Next >

Related Business Law Questions
If I paid a talent money for contracts to story rights and
If I paid a talent money for contracts to story rights and the contract was signed in Colorado, but the business resides in another state, the business is not obligated to pay taxes? It is the talents… read more
lucy7368
lucy7368
Juris Doctor
763 satisfied customers
I need a simple contract to define a business relationship
I need a simple contract to define a business relationship between a consultant and our company. Essentialy the consultant is willing to work for a % of ownership in lieu of payment. I need a contract… read more
NYLAWLADY
NYLAWLADY
attorney solo practice nyc
Doctoral Degree
685 satisfied customers
This in continuation to the lawsuit of breach of contract.
Hi, this in continuation to the lawsuit of breach of contract. There is no contract and they have answered our motion to dismiss the claims and indicated that our statue of frauds reason on our dismis… read more
Brandon M.
Brandon M.
Attorney at Law
Juris Doctorate
12,463 satisfied customers
I signed a contract with a company for mold remediation. The
I signed a contract with a company for mold remediation. The company did not identify themselves completely. Owners of Company did not sign contract. They had an Employee to sign as witness to my sign… read more
Barrister
Barrister
Attorney
Doctoral Degree
640 satisfied customers
I need help with filing a breach of contract, Fraud,
I need help with filing a breach of contract, Fraud, Operating without a license for contracting … read more
PaulmoJD
PaulmoJD
Attorney At Law
Doctoral Degree
106 satisfied customers
Regarding terminating a business contract with a billing
Regarding terminating a business contract with a billing company that processes our billing. Both I and my partner signed contract as required by our Operating Agreement for the business . The billing… read more
LegalGems
LegalGems
Juris Doctorate
10,163 satisfied customers
We are contractors in Hawaii and need sample contracts for
We are contractors in Hawaii and need sample contracts for job proposals. Any chance of getting legal samples?… read more
PaulmoJD
PaulmoJD
Attorney At Law
Doctoral Degree
106 satisfied customers
Federal Goverment Contracting Trying to structure a business
Federal Goverment Contracting Trying to structure a business by dove tailing two existing businesses whereas one owner is a Service Disable Veteran Small Business and the other is considered a large b… read more
Jim Reilly
Jim Reilly
Private Practice Attorney
Juris Doctor
1,759 satisfied customers
Does this category cover "Contract Law" for Real Estae -
Does this category cover "Contract Law" for Real Estae - Tenant issues - A contract / lease agrement?… read more
N Cal Atty
N Cal Atty
Doctoral Degree
59 satisfied customers
In Wisconsin, if a Contract does not contain an limited
In Wisconsin, if a Contract does not contain an limited liability company's address, registered company name and either the initials "LLC" or "Limited Liability Company" or any indication it is a limi… read more
Damien Bosco
Damien Bosco
2,990 satisfied customers
You reviewed a contract for us and made suggestions for
You reviewed a contract for us and made suggestions for changes. Attached are the proposed changes the environmental company is willing to make.Can you review these and see if these seem acceptable.Th… read more
PaulmoJD
PaulmoJD
Attorney At Law
Doctoral Degree
106 satisfied customers
I looked at my contract, it states: "In the event any
I looked at my contract, it states: "In the event any portion of the purchase price is financed, this Agreement and any subsequent retail installment contract or security agreement is subject to the a… read more
lawyerJ
lawyerJ
Juris Doctorate
125 satisfied customers
I need a review of a contract for services. This is the
I need a review of a contract for services. This is the final draft of a contract for environmental cleanup from an underground fuel tank that was removed from a site we bought. This company did the r… read more
PaulmoJD
PaulmoJD
Attorney At Law
Doctoral Degree
106 satisfied customers
If a party (who is a debtor in a bankruptcy) brings a
if a party (who is a debtor in a bankruptcy) brings a lawsuit against another party outside of bankruptcy, and the debtor party keeps filing bad faith claims through his lawyer when there is evidence … read more
Infolawyer
Infolawyer
Attorney
Doctoral Degree
1,793 satisfied customers
Question about business/contract law breach of contract and
question about business/contract law breach of contract and file a complaint I like to consult with an attorney preferably from ILLINOIS… read more
Damien Bosco
Damien Bosco
2,990 satisfied customers
Contract I'm being contracted by a divorce attorney to
ContractI'm being contracted by a divorce attorney to provide accounting work in a case. Do you have samples of contracts that I can use to send to the attorney? It is mainly to protect any emails or … read more
Legal Eagle
Legal Eagle
Attorney
Doctoral Degree
5,882 satisfied customers
In 2013 I received a full bankruptcy discharge and the
In 2013 I received a full bankruptcy discharge and the creditor has been violating the BR discharge,I attempted to reopen the BR case but the judge refused to open it for no valid reason. I have a Pro… read more
TJ, Esq.
TJ, Esq.
Juris Doctor (JD)
11,188 satisfied customers
If someone needs to declare bankruptcy, can they do it in
If someone needs to declare bankruptcy, can they do it in any state or does it have to be in the state of their main residence? Or, basically, what are the rules with regard to location or residence o… read more
Ray
Ray
Lawyer
Doctoral Degree
30,190 satisfied customers

DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.

The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).

DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.

The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).

Show MoreShow Less

Ask Your Question

x