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My husband sold his business in July of 2017. He had a

Customer Question
My husband sold his...

My husband sold his business in July of 2017. He had a system that allowed customers to pay by credit card. Even though the business does not exist, the company that processed the credit cards says we need to keep paying the monthly processing fees. Is this right?

Lawyer's Assistant: What state is your husband in? It matters because laws vary by location.

California

Lawyer's Assistant: What steps has your husband taken so far?

He has phoned them to tell them the company not longer exists. Essentially they sa to bad, keep paying for 2.5 more years.

Lawyer's Assistant: Anything else you want the lawyer to know before I connect you?

That should do, thank you

Submitted: 4 months ago.Category: Legal
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3/19/2018
Lawyer: Legal Eagle, Lawyer replied 4 months ago
Legal Eagle
Legal Eagle, Lawyer
Category: Legal
Satisfied Customers: 13,305
Experience: Licensed to practice before state and federal court
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Hello! I am a licensed attorney, admitted to practice in state and federal court. I have a nearly 100% satisfaction rating (click here for more info) so all that means is that you can count on me to help today. Because I want to provide you with the most accurate answer possible, do you mind if I take a moment to review your question?

Please keep in mind that our conversation does not include an attorney-client relationship and this is for general information purposes only.

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Lawyer: Legal Eagle, Lawyer replied 4 months ago

Thanks so much for your patience. Whether he has to pay depends partially on what was in his original contract. If in his original contract the terms said that he only had to pay if the business was still operating, then their demand for additional payments is a breach of contract.

A breach of contract just simply means that one party was obligated to perform and they have either have not performed or have said that they will not perform. This applies even when there was no written agreement, but just an oral agreement between the parties. Typically, the aggrieved party is entitled to be returned to the same position they were in before the breach. There’s a site that I’ve used in the past where you can find a good template for advising of a breach of contract. It's a bit easier (and cheaper) than going through litigation and I have seen it be effective in the past. If this doesn’t work, sadly, the only other option is to either go through an informal mediation or file a lawsuit in your local court. This website is also pretty cool because you can download the forms right after purchasing. Click here to get started. What other questions did you have for me today that I can help you out with:-)?

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