Signed for 12 months of advertising but didn't get the 12 months of advertising

[smutlydog]

What is the name of your state? Texas

This question is pertaining to a previous question about a contractor representing my LLC business and signing for 12 months of magazine advertising without my consent and using my credit card. Three payments were made and the contractor paid me back for that. It was a recurring payment arrangement. After 3 payments the contractor asked me to cancel my card number and told me he would deal with the advertising company directly. Well he didn't and now a debt collector representing the advertising company is threatening me with a law suit. I already know that I can be held liable when one of my contractors represents my business whether I authorized the decision making or not.

Here is my question. Does it matter how many months the ad ran for? What if the ad only ran for 3 of the 12 months? Can they still sue me for the 9 months left of payments even though I only received 3 month of advertising ?

 

[adjusterjack]

Can they still sue me for the 9 months left of payments even though I only received 3 month of advertising ?

Can they? Of course they can. They can sue for anything.

How much they may be awarded depends on the terms and conditions of the ad contract and any required mitigation.

Have the contract reviewed by an attorney to determine the level of risk involved.

 

[zddoodah]

This question is pertaining to a previous question

If this previous question was posted here, then you should post in that thread, rather than starting a new one, so that everyone can have the benefit of whatever information was in the prior post.

Does it matter how many months the ad ran for? What if the ad only ran for 3 of the 12 months?

I don't know because you provided no information about the agreement between your company and the advertiser.

Can they still sue me for the 9 months left of payments even though I only received 3 month of advertising ?

Anyone can sue anyone for anything. You haven't provided sufficient information for anyone to take an intelligent stab at calculating possible damages.

 

[adjusterjack]

If this previous question was posted here, then you should post in that thread, rather than starting a new one, so that everyone can have the benefit of whatever information was in the prior post.

Too late for that.

However, a link to the previous thread suffices.

(1) Contractor signed on my LLC's behalf | Forum.FreeAdvice.com

You could have accomplished that just as easily as I did.

 

[quincy]

What is the name of your state? Texas

... Does it matter how many months the ad ran for? What if the ad only ran for 3 of the 12 months? Can they still sue me for the 9 months left of payments even though I only received 3 month of advertising ?

Yes, the company can sue to enforce the terms of the contract.

If the signed contract was for 12 months of advertising, you are obligated to pay for the full 12 months of advertising absent anything in the contract that says differently (e.g., an early termination clause).

You will need to read the contract to see if there is a termination clause and what penalties can be assessed if you end the contract early.

 

[smutlydog]

Looks like I am heading for a $3500 settlement . I argued for $3,000 so not to far off the mark. It could have ballooned to $10,000 plus had it landed on an attorney's desk. thanks everyone for all the replies

 

[quincy]

Looks like I am heading for a $3500 settlement . I argued for $3,000 so not to far off the mark. It could have ballooned to $10,000 plus had it landed on an attorney's desk. thanks everyone for all the replies

So you will pay the company $3500 to settle? A settlement is (generally speaking) better than the risk you take in a trial.

Thanks for the update.

 

[adjusterjack]

Looks like I am heading for a $3500 settlement . I argued for $3,000 so not to far off the mark. It could have ballooned to $10,000 plus had it landed on an attorney's desk. thanks everyone for all the replies

Consider seeking reimbursement from your contractor who got you into this mess.

 

[quincy]

Consider seeking reimbursement from your contractor who got you into this mess.

That was the suggestion made in smutlydog’s previous thread, too.

 

[smutlydog]

So you will pay the company $3500 to settle? A settlement is (generally speaking) better than the risk you take in a trial.

Thanks for the update.

Yes $3,500 to settle

 

[quincy]

Yes $3,500 to settle

Thanks for answering my question.

If the $3500 gets you out of your contract at a lesser cost than paying for the remaining months of ads, then it seems a reasonable settlement. It is too bad that your business did not benefit from the advertising.

 

[Litigator22]

Consider seeking reimbursement from your contractor who got you into this mess.

The need to jog smuty's memory about his cock'n bull yarn (as if it were commonplace for an employee/contractor to pay his employer'/principal's business advertising costs) is convincing confirmation that it was just that!

 

[smutlydog]

The need to jog smuty's memory about his cock'n bull yarn (as if it were commonplace for an employee/contractor to pay his employer'/principal's business advertising costs) is convincing confirmation that it was just that!

He is actually a silent partner who is paid as a contractor. I fund these projects with no financial help from him. His profits vanish immediately and I live right above the poverty level so that this business can grow.

 

[Zigner]

He is actually a silent partner who is paid as a contractor. I fund these projects with no financial help from him. His profits vanish immediately and I live right above the poverty level so that this business can grow.

That doesn't make things better. That just makes it even more clear that he had the authority to enter into contracts on behalf of the company. Heck, I think any case against him that you may have had flew out the window with that admission.

 

[quincy]

He is actually a silent partner who is paid as a contractor. I fund these projects with no financial help from him. His profits vanish immediately and I live right above the poverty level so that this business can grow.

I agree with Zigner. It sounds as if your “silent partner” had the authority to enter into a contract for the business. The fact that you gave him your credit card supports this. Calling him a “contractor” appears misleading.

I think you were fortunate that the advertising company didn’t hold you to paying the full 12 months.