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We have rented some machines through finance and have the…

We have rented some...

We have rented some machines through finance and have the option to send them back after 12 months or purchase. We want to send them back but the owners who own & make the machines pay a commission and installation fee if you find buyers of their machines. They owe us $9000 what should we do as we know they can"t afford to pay us

Lawyer's Assistant: What steps have you taken so far? Have you prepared or filed any paperwork?

No

Lawyer's Assistant: Where is the property located?

In WA and have sent them repeated invoices

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Answered in 2 minutes by:
3/27/2018
Attorney Wendy
Category: Legal
Satisfied Customers: 1,198
Experience: Member at Keefer & Keefer LLC
Verified

Hello. My name is ***** ***** I am an attorney. To clarify, is the $9000 owed to you part of their commission/installation fee? In other words, did you find new buyers but now are not being paid the commission and for the installation?

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Customer reply replied 3 months ago
that's correct

Thanks. At this point, you are - as you have properly identified - trying to find a way to enforce the terms of the contract. The first option you may consider is to send a written demand (or follow-up demand in follow-up to the invoices) stating that if payment isn't made by a specified date or arrangements made that are agreeable to you for a payment plan to provide the $9000 over time (possibly to include a convenience or finance fee) you will have not choice but to consider other options. You might want to offer to them that the new buyers - assuming they financed the purchase or took over your payments - pay those payments to you until such time as the $9000 is paid off. The other option is to file a lawsuit for breach of contract. That path will take longer and potentially result in additional expenses to you; so it should be a last resort, but is certainly there. The key, often, when you get no response to invoices or requests for payment is to set firm deadlines spelling out what steps you will take if payment is not made or arranged for. You may want to review your finance contract to see if there is any provision for collecting attorney's fees if either of you ends up having to sue to enforce a provision of the contract. You would want to make sure the commission/installation provision is part of that contract and not something they offered less formally later.

If the company honestly doesn't have the funds, a payment plan may be the best option. If you ended up having to file a lawsuit you would also want to be pretty sure they had assets you could seize to pay any judgment, otherwise the judgment is just a piece of paper.

I hope this helps and can only imagine this is pretty frustrating, since you could've just sent the equipment back with no buyer for it. If you need further assistance, please reply to this email. If I answered your question and provided excellent service, I would greatly appreciate your 5 star rating at this time.

​Please note: This information is for educational purposes only and is not legal advice. No course of action is being proposed and no attorney-client relationship or privilege has been formed as a result of this conversation.

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Customer reply replied 3 months ago
Thanks Wendy. We are sure they don't have the money as he was recently told to get out of two rented factory units. Their were three machines we help sell for them and they payed them the full amount. I didn't mention we have a old machine of theirs worth $1000-$2000 that was used if people wanted to try before buying.He has asked us when he can organize a courier to pick it up. We haven't answered him yet on that request.

You would certainly be reasonable to refuse return of that machinery until payment. It is even more disturbing that they received full payment and failed to pay the commission/installation. You may end up with no option but to file a lawsuit and stand in line with what may be a large line of creditors. I am so sorry you are in this frustrating position.

Attorney Wendy
Category: Legal
Satisfied Customers: 1,198
Experience: Member at Keefer & Keefer LLC
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Customer reply replied 3 months ago
Thank you.
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