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Law Educator, Esq.
Law Educator, Esq., Lawyer
Category: Consumer Protection Law
Satisfied Customers: 116709
Experience:  Attorney experienced in commercial litigation.
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I signed a contract as an independent contractor to provide

Customer Question

I signed a contract as an independent contractor to provide database support to a company in Los Angeles. The terms of payment were supposed to be 30 days. However, after I submitted my first invoice, they said that I had to go through another contractor whose payment terms were 45 days, and that I would receive payment from the other contractor. I was supposed to receive payment on September 3 and was told by the other contractor that the company released the funds for payment, so I wrote a check anticipating receipt of the money. On September 7, the contractor notified me that the company would not release payment until some time in October because this is the time of the year that they balance their books. Do I have any recourse against the company?
Submitted: 1 year ago.
Category: Consumer Protection Law
Expert:  Law Educator, Esq. replied 1 year ago.

Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.

I am taking from the way you wrote your statement, your contract you signed made no mention of this other contractor and the 45 day payment terms. If the contract you signed did not mention those other terms, you have a claim against the company for breach of contract. So legally, you can sue the client for breach of contract with you to seek your funds and you have to sue them in L.A. where they are located. You can sue for all damages, including any bounced checks and late fees, incurred as a result of their breach of the contract with you.

They cannot make you wait for payment through a third party if your contract was not to do so and as such they are liable to you for damages their breach caused.

Customer: replied 1 year ago.
I had to sign a contract with the other contractor in order to receive payment on my first invoice. That actually caused a delay of almost 60 days before I received my first payment. Do I still have a claim against them or is there some government agency that I can file a complaint with?
Expert:  Law Educator, Esq. replied 1 year ago.

Thank you for your reply.

Unfortunately, there are no government agencies that get involved in contracts people willingly sign.

If you signed that new contract for payment you let the initial company off the hook. If it has been more than 45 days though and you have not received payment from the other contractor company, then you can sue them for your payment.

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