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Hello MDLaw. A Customer Care Representative has scheduled a

follow-up for Friday June 28...
Hello MDLaw. A Customer Care Representative has scheduled a follow-up for Friday June 28 at 11:00am PST.

Here is the link to the original question: http://www.justanswer.com/business-law/7u0l4-hello-nevada-recently-sold-merchandise.html.
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Answered in 8 minutes by:
6/26/2013
MDLaw
MDLaw, Attorney
Category: Business Law
Satisfied Customers: 6,135
Experience: Experience in business law, contract law and related matters.
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I'd be happy to help you with your follow-up tomorrow.
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Customer reply replied 4 years ago

That sounds good, I look forward to the follow up Friday, at 11AM.


 


Have a nice day!


 


David

Thanks!
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Hello, David! What is the question that you need answered today?
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Customer reply replied 4 years ago


Hello, I was wondering, regarding a contract that the company has breached, does that somewhat nullify the contract?

Can you please give me some specifics, please? What is the contract for and what term of the contract was breached?
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Customer reply replied 4 years ago


Yes, here is what happend:


 


We had a contract to build a tradeshow booth for a customer. After the contract was agreed, they then asked a former employ to add sever costly components, at no additional cost to them. This was a huge loss to us, but went along with it, since the former employee agreed to it in an email. We were not happy about that, but gave them everything they wanted, even though we lost on it. However, a key component of the contrract was that they customer needed to "pay in full" before anything ships out. They gave us a bad check (whereby they placed a built in stop payment) at the time they made out the check). There check was returned from the bank, and it took us (18) days to finally get paid, after they picked up the booth us.


 


Is there anything we can do in order to get compensated for our losses on this?


 


Thanks!

When you say that the contract was "agreed", did they sign a contract or was it a verbal contract?

When you say that they asked a former employee to add components, are you saying that one of your employees added the components or one of their employees?

To be clear, you are not asking to void the contract but you are asking if you can get compensated for your losses? What losses specifically are you referring to, please?
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Customer reply replied 4 years ago


Hi, the contract was a written via email, and all confirmed via email.


 


One of their employees added components, and one of our former employees agree to it.


 


We are considering both options here. If we void the contract, then we belive that they would need to return the tradeshow booth we build for them, and then we would charge them a standard "rental fee" for the booth.


 


On the other hand, we would also consider just being compensated for our losses, regarding the additional components that we had to build for them. We feel that it's not fair for us to have to build additional components for them, which were not charged for, when they did not meet the terms of payment on this. We don't know though if the fact that they are 18 days late on the payment calls for a voidance, or a restructuring of the contract?

Unless you have a provision that says that the contract is voided, a breach does not nullify the entire contract. Also, keep in mind that voiding the contract means that you would have to give them their money back since voiding a contract means that you go back to as if the contract never existed. You would not be able to charge them a rental fee for the booth if that is not what the two parties agreed to.

Since your contract did not charge them for the additional compenents, you can not now go back and charge them for it. Now, if your contract had language stating that a breach of the contract means that the components added will no longer be free, then you would be able to charge them for that.

Please let me know if this has answered your question or whether you need any additional information, Thanks, David.
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Customer reply replied 4 years ago

Thank you, XXXXX XXXXX answers the question. Have a great day, and thanks for your help!

You are most welcome. Thank you in advance for your positive rating. Have a great weekend!
MDLaw
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Satisfied Customers: 6,135
Experience: Experience in business law, contract law and related matters.
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