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Rights for Breach of Contract?

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mrs.jgdewald

Junior Member
What is the name of your state (only U.S. law)? Arkansas

We are in a contract with a company. The contract states payment within 30 days. We are now sitting at 43 days without payment. We are owed $1300.00 and the owner of the company keeps telling us that payment will be mailed, and we can't pick it up at her office. How can we, legally, do something about this? She has put us in a position that we can no longer run our business, waiting for her to pay.
 


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Willlyjo

Guest
What is the name of your state (only U.S. law)? Arkansas

We are in a contract with a company. The contract states payment within 30 days. We are now sitting at 43 days without payment. We are owed $1300.00 and the owner of the company keeps telling us that payment will be mailed, and we can't pick it up at her office. How can we, legally, do something about this? She has put us in a position that we can no longer run our business, waiting for her to pay.
Simply send a congenial demand letter outlining your concerns and that you'd be forced to file an action in small claims court which would cost the company owner time and extra money if she fails to make such payment in a prompt manner.
 

LdiJ

Senior Member
Simply send a congenial demand letter outlining your concerns and that you'd be forced to file an action in small claims court which would cost the company owner time and extra money if she fails to make such payment in a prompt manner.
Depending on the industry, that might not be good advice. It might just lose them a good customer. Some industries define 30 days differently than others when it comes to payables. One classic definition of 30 days, is 30 days from the 10th or the 25th, whichever date follows the receipt of the goods. So, you could deliver on the 11th, but not get paid until 30 days from the 25th.
 

HomeGuru

Senior Member
Does the contract have a default provision or what happens if payment is not made. You better plan better with your finances so that the $1300 does not force you into the poor house.
 

mrs.jgdewald

Junior Member
What is the name of your state (only U.S. law)? Arkansas

We are in a contract with a company. The contract states payment within 30 days. We are now sitting at 43 days without payment. We are owed $1300.00 and the owner of the company keeps telling us that payment will be mailed, and we can't pick it up at her office. How can we, legally, do something about this? She has put us in a position that we can no longer run our business, waiting for her to pay.

Unfortunately, we are new to this, we had ample means when we started, but the terms of the contract still says payment within 30 days after receipt of Affidavit of completion. Not certain dates attached to it. The type of business we do, which is courier and process service work, we have to make multiple attempts on some of the "harder" people to track down. Good intentions, and oxygen, don't make a car run. Herein lies the problem of not getting paid, for now 43 days. No default provision is made in this contract on her side, although there is a provision if WE don't fulfill our part.
 
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Willlyjo

Guest
Depending on the industry, that might not be good advice. It might just lose them a good customer. Some industries define 30 days differently than others when it comes to payables. One classic definition of 30 days, is 30 days from the 10th or the 25th, whichever date follows the receipt of the goods. So, you could deliver on the 11th, but not get paid until 30 days from the 25th.
Losing a customer who failed to pay within the contractual agreement of 30 days and might not even pay at all, is not losing a good customer. ;)
 

Zigner

Senior Member, Non-Attorney
Losing a customer who failed to pay within the contractual agreement of 30 days and might not even pay at all, is not losing a good customer. ;)
This type of business can rely on word of mouth. Firing a customer who is a little late (yes, 43 days still is "a little late") may be jumping the gun.
 

Mass_Shyster

Senior Member
simply send a congenial demand letter outlining your concerns and that you'd be forced to file an action in small claims court which would cost the company owner time and extra money if she fails to make such payment in a prompt manner.
warning - this is bad advice
 
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Willlyjo

Guest
warning - this is bad advice
How is sending a congenial letter expressing concerns about a payment that hasn't been made pursuant to what is stated in the contract and possible consequences if such payment is not received in a timely manner, bad advice?:rolleyes:
 

LdiJ

Senior Member
How is sending a congenial letter expressing concerns about a payment that hasn't been made pursuant to what is stated in the contract and possible consequences if such payment is not received in a timely manner, bad advice?:rolleyes:


Willy...do you know what industry the OP is in? Do you know what is the habitual lead time for accounts payable in OP's industry? Have you ever worked with accounts payable or receiveable? I gave the OP an example of the type of "norm" for some industries. You called customers who adopted that norm as "not good customers". In this instance, you truly could be giving really really really bad advice.
 

Mass_Shyster

Senior Member
How is sending a congenial letter expressing concerns about a payment that hasn't been made pursuant to what is stated in the contract and possible consequences if such payment is not received in a timely manner, bad advice?:rolleyes:
Go to law school and find out.
 
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Willlyjo

Guest
Willy...do you know what industry the OP is in? Do you know what is the habitual lead time for accounts payable in OP's industry? Have you ever worked with accounts payable or receiveable? I gave the OP an example of the type of "norm" for some industries. You called customers who adopted that norm as "not good customers". In this instance, you truly could be giving really really really bad advice.
Not so! You forget there is a contract stating "payment within 30 days after affidavit of completion." This is a binding contract--it doesn't matter what the industry norm is regarding payments. If the company signs such contract, they must abide by it. I do agree that the OP should consider being paid according to the "norm" in future contractual relationships, but in this instance, my advice is really, really, really, not bad advice at all! ;)
 

Mass_Shyster

Senior Member
Good response coming from someone who doesn't know the answer to my question. :rolleyes:
You have proven yourself to be incapable of learning. I will not waste my time explaining why your advice can cause harm to OP.

To the OP, Willyjo is a troll and is not a lawyer. He is well known for giving bad advice. This is a perfect example. DO NOT FOLLOW HIS ADVICE.
 

mrs.jgdewald

Junior Member
Depending on the industry, that might not be good advice. It might just lose them a good customer. Some industries define 30 days differently than others when it comes to payables. One classic definition of 30 days, is 30 days from the 10th or the 25th, whichever date follows the receipt of the goods. So, you could deliver on the 11th, but not get paid until 30 days from the 25th.
We are in a contract with a company. The contract states payment within 30 days. We are now sitting at 43 days without payment. We are owed $1300.00 and the owner of the company keeps telling us that payment will be mailed, and we can't pick it up at her office. How can we, legally, do something about this? She has put us in a position that we can no longer run our business, waiting for her to pay.
 

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