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Lucy, Esq.
Lucy, Esq., Attorney
Category: Legal
Satisfied Customers: 29823
Experience:  Lawyer
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I am being sued of contract on a merchant cash advance

Customer Question

i am being sued for breach of contract on a merchant cash advance loan they are adding 10k in liquidated damages is this legal in pennsylvania?the company is a florida company but my business is in Pennsylvania
JA: The Lawyer will need to help you with this. Have you consulted a lawyer yet?
Customer: no
JA: Please tell me everything you can about this issue so the Lawyer can help you best. Please give me a bit more information, so we can help you best.
Customer: I have court tomorrow, in philadelphia my company defaulted on a Merchant Cash Advance loan in 2014, they added to liquidated damages on for having a the ach stop, and one for breach of contract
JA: Is there anything else important you think the Lawyer should know?
Customer: i dont think so
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Submitted: 1 year ago.
Category: Legal
Expert:  Lucy, Esq. replied 1 year ago.
Hi, I'm Lucy, and I'd be happy to answer your questions today. I'm sorry to hear about your situation. First, there has to be a liquidated damages clause in the contract. If there isn't one, they're not entitled to anything. If it's there, then you have the ability to dispute the reasonableness of the clause. If it's so severe that it's essentially a penalty for breaking the contract, and not a reasonable estimate of the damages they might incur in the event of a breach, it's not allowed. Cash advance loans are usually for pretty low amounts of money - unless you borrowed tens of thousands of dollars (or more), a judge probably would not allow them to collect liquidated damages. If you have any questions or concerns about my response, please reply WITHOUT RATING. It's important that you are 100% satisfied with my courtesy and professionalism. Otherwise, please rate my service positively so I am paid for the time I spend answering questions. If you are on a mobile device, you may need to scroll to the right. There is no charge for follow-up questions. Thank you.
Expert:  Lucy, Esq. replied 1 year ago.
Did you need any more help with this?