Termination of Business Contract

[retter143]

Washington State

[seniorjudge]

Originally Posted by retter143

Washington State

Do you have grounds to terminate a business contract if the person/company that holds the contract has conducted business in a manner that has or could damage your reputation? To elaborate, we entered a contract with a promotional company that was promoting our business through paid vouchers, which were to be paid to them (the promoter).

Without getting into all the details, some purchasers were inadvertantly making their checks out to our company instead of the promotional company. The rep then proceeded to alter the checks (redlined Payee and forge initials) in an effort to make the change appear legitimate or simply change to check payable to cash.

There have been a couple of complaints that have surfaced from these individuals and one from a financial institution as altering checks is a form of check fraud. We are concerned that more are on the way, especially since this individual has change Payee to cash. We only know a couple of reason that you would do that (payable to cash).

Our only interest is simply cancelling our contract with the promotional company, as our business reputation is on the line and after 25 years or blood, sweat, and tears, do not want to see our reputation damaged over someone else's questionable business ethics. Because unfortunately we are also getting the calls and association with the mess.

On a side note, the rep for the promotion company did take care of the two people who complained. However, we are hesitant to continue the business relationship for obvious reasons. Kind of a huge gamble because for the two we know about, how many do we not know about and for how long will the calls come in?

Are we, legally, in our rights to have our contract cancelled due to this completely unprofessional practice of check altering? The rep seems to think that we should be held to the contract, we think otherwise. Maybe this is due is part to the rep feeling that nobody was cheated out of their money and service and the rep was just taking the money that this rep was entitled to. However, check altering is check altering and it is defined as check fraud by our Government. And we are looking like the ones that are doing it.

Any ideas on this one?

Q: Do you have grounds to terminate a business contract if the person/company that holds the contract has conducted business in a manner that has or could damage your reputation?

A: What does your contract say?



However, check altering is check altering and it is defined as check fraud by our Government. And we are looking like the ones that are doing it.

Sounds bad to me...I wouldn't be involved in this. I wouldn't have even posted this!