L
luciano
Guest
I began a small business and it has not gone well due to some unforseen problems. I had contracts signed from some sales reps and in the contracts it was stated that the contract can be cancelled by either party without further obligation. The reps purchased sample products (at substantially below cost) and due to problems with suppliers I was unable to fullfill all of the orders. I have been making full refunds (and they have kept the samples that were shipped) but because of the fact that I have lost money I haven't been able to send all of the refunds at the same time. I plan to make all refunds within the next month or two. The total amount paid by the sales reps for the samples was either $50 or $100. At this point I owe a total of about $2000 (not to any single person). Is this something that they can sue me or take me to court over? I live in PA but the reps live in several different states. Also, what obligations do I have to them as far as the contracts? Is this a breach of contract since the company never really got off the ground? Thank you for any responses.