Location Contract Breached

[Agent86]

If I bring this claim to court it will be in Las Vegas.

Location company hired to find 5 locations for vending machines in 180 days. There were criteria to be met for the locations, in certain areas, with a certain amount of traffic etc.

The locating company was given a deposit of $3000. The agreement states this deposit is non-refundable. In addition, each location found by the locating company triggers a new payment of $600. The total contract would therefore be for $6000, after all 5 machines are placed.

This company has not found ONE location and we are now at the end of our 180 day agreement. The company has been trying, but bottom line no locations have been found.

My position is the locating company is in breach of the contract, and they have delivered nothing. I have also lost 6 months of time hoping this company would live up to the agreement has they have promised to do every time I have contacted them. Since they are in breach, I insist they should refund my deposit, even though the contract says "non-refundable".

14. A. Contract Entirety: If one part of this contract is found to be void it shall not negate the other parts of this contract. This contract constitutes the entirety of the contract and nothing else shall be deemed part of this contract other than what is written herein. The only exception to this previous sentence ("the entirety of the contract" provision) is if both parties choose to modify this contract and do so in writing - which is then signed and dated by both parties to this contract.

So does this mean I have no recourse?

I have paid for nothing. They are in breach, no locations delivered, refund the money. Right?

 

[Zigner]

Based only on what you've posted, it sounds like you should have paid the company $3,600 by now and you shouldn't expect that back. Having said that, contract review is beyond the scope of this (or any) internet forum. You should speak with a local attorney to review your contract fully.

 

[Agent86]

Thanks Zigner, if they had found 1 location then they would have $3600. Since they have found zero locations, they have triggered no payments. So I will need an attorney for small claims court in Las vegas?

 

[Zigner]

Sorry, I misread your post. In any case, the contract will need to be reviewed in its entirety to determine your rights at this point. That is beyond the scope of this (or any) internet forum. You don't need an attorney for small claims, but you could use one to figure out if you even have a case to sue over.

 

[adjusterjack]

Thanks Zigner, if they had found 1 location then they would have $3600. Since they have found zero locations, they have triggered no payments. So I will need an attorney for small claims court in Las vegas?

Presumably you read and understood the contract before you signed it and handed over $3000.

Did the contract guarantee you 5 locations in 180 days or did it just agree to search for locations within your parameters.

There's a big difference.

 

[quincy]

Your biggest challenge in recovering your deposit probably will be overcoming the "non refundable deposit" clause.

You should find an attorney in your area to personally review the contract in its entirety.

 

[Agent86]

Presumably you read and understood the contract before you signed it and handed over $3000.

Did the contract guarantee you 5 locations in 180 days or did it just agree to search for locations within your parameters.

There's a big difference.

Thanks for the replies. It appears I will need to consult an attorney, which is already information I need, so thanks again!

Yes I did read the contract. "Understood" may be the key question indeed.

The contract does indeed mean FINDING locations within the agreed parameters, not just to search for them. BTW, when the owner of the company was selling this to me, when I asked him about the possibility of not finding any locations within 180 days, I was assured, "nothing to worry about, it has never happened in the history of the company..."

You get the picture.

I did have a third party who vouched for this company before I agreed. He said if this guy fails, just the word of mouth will ruin his company.

Seems a lot cheaper to just pay me my $3000 now?

 

[quincy]

To understand the contract, I recommend a personal review of its terms and conditions.

I also recommend you are careful in what you say in your "word of mouth" comments on the company. Relating the facts of your personal experience is okay. Generalizations about the company as a whole based on your single experience should be avoided.

Good luck.

 

[adjusterjack]

The contract does indeed mean FINDING locations within the agreed parameters, not just to search for them.

Does it? Or is that just how you want it to read? You haven't quoted anything word for word.

BTW, when the owner of the company was selling this to me, when I asked him about the possibility of not finding any locations within 180 days, I was assured, "nothing to worry about, it has never happened in the history of the company..."

I'm guessing that your contract has a clause something like "This is the entire contract. Anything said outside this contract doesn't count."

 

[Agent86]

Does it? Or is that just how you want it to read? You haven't quoted anything word for word.

The Company agrees to find Location(s) for Five (5) Vending Machine(s). These Vending Machine(s) may also be referred to herein as “Machine(s),” “Unit(s),” and/or “Location(s)).”

Seems more then clear to me. However, an attorney is reviewing just to be sure.

Also, I talked to the third party since I started this thread and he does confirm my analysis. Let's see what the lawyer thinks.

thanks again...

 

[quincy]

Having the attorney take a look at the contract is smart. Good luck.

 

[adjusterjack]

The Company agrees to find Location(s) for Five (5) Vending Machine(s). These Vending Machine(s) may also be referred to herein as “Machine(s),” “Unit(s),” and/or “Location(s)).”

Seems more then clear to me.

Yes, taken out of context, it does. But it wouldn't surprise me that somewhere in the contract there were some disclaimers because finding those locations depends on a variety of criteria over which the company has no control.

 

[quincy]

Contracts really need to be read in their entirety.