Breach of Contract question

[jkohen7514]

NY
Hi,
Please note that I am a young student that is being taken advantage of by a rather large corporation in New York, NY any help would be greatly appreciated. I spent all my life savings on this and now I pretty much have nothing.
I'm in the process of taking over a vending business from a gentlemen that's retiring. Our contract was tied in to us getting a contract from the location that will allow us to have the machines there. All previous contracts were 3 years and 20% commission. The location decided they wanted close to 15k in new vending machines. This is a copy of the email they sent us when we won the new contract.
"Congratulations, you won the contract. Thank you for showing me the different models, giving me the dimensions, and answering my questions so promptly.

Let's do this:
1. Keep the two machines on the 5th floor - no change.
2. Removed the two machines on the 6th floor ASAP.
3. Wheel in and install
a. the bubble soda machine
b. the green coffee machine
c. the Wurlitzer 800 snack machine."

So I went ahead and purchased the new machines. Now the location is stating they want:
" Upon completion of renovations to the 5th floor, Operator shall remove two machines currently located on the 5th floor.
2. Operator and Customer will work together to determine replacement machines appropriate to the look and layout of the renovated lounge on the 5th floor. Replacement machines will be either:
a) One smaller unit
b) Two smaller units or
c) One larger unit.
Final decision must be agreed to by both Operator and Customer"


"To ensure transparency in reporting and to make possible trend analysis, Operator agrees to summon a representative for the Customer (any school staff) to act as witness when the machine Gross Sales total is displayed."
Never had this before...

" And now they want to make a one year contract instead of a 3 year contract.

This is all after they said we won the contract and never mentioned any of these terms, and I have all ready invested over 15k.

Are these new terms considered breach of contract? when can I go after the location for?

Thank you

 

[Mass_Shyster]

Congratulations, you won the contract.

What are the terms of the contract you won? What did your bid offer?

Are these new terms considered breach of contract? when can I go after the location for?

You have not provided enough information to determine what terms they may have breached.

 

[justalayman]

and who are you inferring breached what contract?


You have more than one contract involved with this. Understand, we have not read any of them so any advice will have to be accepted with that understanding and as such, may be completely invalidated by some other section of the contracts involved.

I'm in the process of taking over a vending business from a gentlemen that's retiring.

Ok, has this contract been completed?

If not, why are you spending any money?

Our contract was tied in to us getting a contract from the location that will allow us to have the machines there.

Ok, does the contract with the location controller allow such changes? Do you even have a contract with them yet?

If not, why are you spending money?

BTW; what happened with your dads situation?

 

[jkohen7514]

It was a renewal of the original contract that has been in affect for the past 9 years, renewable every 3 years. Now they wanted these terms in order to renew the original contract. They wanted to keep the machines on the fifth floor and new machines on the 6th floor and now they want the machines and the 5th floor replaced as well. This is the email from the Director of where the machines are located
"Congratulations, you won the contract. Thank you for showing me the different models, giving me the dimensions, and answering my questions so promptly.

Let's do this:
1. Keep the two machines on the 5th floor - no change.
2. Removed the two machines on the 6th floor ASAP.
3. Wheel in and install
a. the bubble soda machine
b. the green coffee machine
c. the Wurlitzer 800 snack machine."

A renewal of the original terms, original terms was 3 years and now they want one year. We never had anything about transparency before.

The main point here is, if the fact that he emailed me and told us to get the new machines on the 6th floor and keep the machines on the 5th floor. Is it a breach of contract when he now says he wants us to remove the machine from the 5th floor. And the fact that he wants transparency along with one year and not 3 years. Plus we already went and purchased the machines.
Had we known they wanted this done we would have never gone ahead with the bid. He himself never mentioned anything about it... to the contrary he wanted us to keep the machines on the fifth floor.

From what I understand, they wanted a renewal of the original terms with the new changes he has sent me. ( thats the email from him congratulations) It was just a regular contract that we pay 20% commission and we keep the machines full, and they cant just remove the machines.

 

[justalayman]

stop with all the details. Until it is established you have a contract with somebody, the details are irrelevant.

so, start with the simple stuff:

j

ustalayman and who are you inferring breached what contract?


You have more than one contract involved with this. Understand, we have not read any of them so any advice will have to be accepted with that understanding and as such, may be completely invalidated by some other section of the contracts involved.


Quote:
I'm in the process of taking over a vending business from a gentlemen that's retiring.
Ok, has this contract been completed?

If not, why are you spending any money?

Quote:
Our contract was tied in to us getting a contract from the location that will allow us to have the machines there.
Ok, does the contract with the location controller allow such changes? Do you even have a contract with them yet?

If not, why are you spending money?

BTW; what happened with your dads situation?

 

[jkohen7514]

and who are you inferring breached what contract?


You have more than one contract involved with this. Understand, we have not read any of them so any advice will have to be accepted with that understanding and as such, may be completely invalidated by some other section of the contracts involved.


Ok, has this contract been completed?

If not, why are you spending any money?

Ok, does the contract with the location controller allow such changes? Do you even have a contract with them yet?

If not, why are you spending money?

BTW; what happened with your dads situation?

We retained a top lawyer and we were offered two settlements to date but have not settled yet. Thanks for asking

This is what it says in my contract with the owner:

"The seller will transfer ownership of the location rights and provide the keys to all the machines. The seller will also secure a 3 year vending contract between the buyer and the location. This contract will be renewable every 3 years with a 30 day opt out clause for both parties."

Obviously the money I put down with the seller which was small deposit I can get back, but the questions is what about the money I put in for the new machines, can I go after the location for that. Also see my other post with some clarifications. Thank you for your time.

 

[jkohen7514]

My contract with the seller:

I gave him a down payment with the rest payable at a latter time.

What more do you want to know? what am I not telling you?

 

[justalayman]

jkohen7514;2232391]We retained a top lawyer and we were offered two settlements to date but have not settled yet. Thanks for asking

did it end up against the city or the home owner?

This is what it says in my contract with the owner:

"The seller will transfer ownership of the location rights and provide the keys to all the machines. The seller will also secure a 3 year vending contract between the buyer and the location. This contract will be renewable every 3 years with a 30 day opt out clause for both parties."

well, technically it doesn't include the machines, just the keys. Hopefully that is included elsewhere. But anyway, it states the seller will secure a contract with the location. It does not specify that that contract be acceptable to you or not or anything that it must include.

So, has the seller secured a contract with the location? Does it include at least what you have included as requirements above?

What else does it include?

Obviously the money I put down with the seller which was small deposit I can get back,

Not necessarily. As long as the seller fulfills the contract between you and him, you cannot unilaterally void the contract and reclaim the deposit.

but the questions is what about the money I put in for the new machines, can I go after the location for that.

that is yet to be seen but so far, you have shown nothing that would allow that. You may be the proud owner of whatever machines you have purchased. Will they look good in your kitchen? Just kidding, sort of. Not trying to make fun of you or the situation but I do have an odd sense of humor. Please excuse it.

Also see my other post with some clarifications.

Ill do that. It may alter what I have posted to date.

nevermind, I thought you were speaking of another thread. The info added doesn't change anything, yet.

 

[jkohen7514]

did it end up against the city or the home owner?

The city

well, technically it doesn't include the machines, just the keys. Hopefully that is included elsewhere. But anyway, it states the seller will secure a contract with the location. It does not specify that that contract be acceptable to you or not or anything that it must include.

You have a good point!

So, has the seller secured a contract with the location? Does it include at least what you have included as requirements above?

No, and no.

What else does it include?



Not necessarily. As long as the seller fulfills the contract between you and him, you cannot unilaterally void the contract and reclaim the deposit.

Well writes "seller requirements" to secure a 3 year deal

that is yet to be seen but so far, you have shown nothing that would allow that. You may be the proud owner of whatever machines you have purchased. Will they look good in your kitchen? Just kidding, sort of. Not trying to make fun of you or the situation but I do have an odd sense of humor. Please excuse it.


Ill do that. It may alter what I have posted to date.

nevermind, I thought you were speaking of another thread. The info added doesn't change anything, yet.

What do you suggest I do now?

 

[jkohen7514]

I don't understand something.

When he says I won the contract, why can't that be going on a renewal of the original contract that mentions nothing about these new requirements?

 

[justalayman]

because he didn;t say that it did.

It's like when you get that mail that says '"You won" on the front. You may have won but the big question is; what have you won.

and part of the problem is, you should not have won anything. Based on what you provided concerning your contract with the seller, the seller was to secure a contract, with at least the terms indicated. If the location folks are calling you, the seller has not met the terms of the contract you have with him.

So, it seems you may have an out with the seller but now what about the machines.

do they look nice in the kitchen? Just kidding, sort of.

This causes a dilemma. You may simply be stuck with them BUT there may be a way to force the seller (of the old machines) to take them off your hands. This gets in to some pretty fine details that really cannot be properly addressed on an internet forum. If the seller, or even the location folks, made certain promises or statements, they may have obligated themselves to take the machines off your hands.

I would strongly suggest you consult with an attorney that can review all germane contracts and information.

 

[jkohen7514]

Thanks for your time. I will let you know what happens on both cases.

 

[HomeGuru]

Thanks for your time. I will let you know what happens on both cases.

**A after reading this thread I feel like having a Pepsi and a bag of chips.