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Charging late fee

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I own a landscape company that is an llc out of Indiana. I got approved for a commercial project which was about $15000. I emailed the director and told him our policy is 50% before we begin and the rest when the job is complete, he said that was standard for them. It took roughly 5 months to get my deposit so I was not confident about the remainder of it coming in the day we completed. About a week prior to completion, I emailed the director again and informed him when we will be complete and asked what he needs from me on my end to ensure we are paid at that time. He said to just send the invoice and he will get them processed. On the invoice I sent them for the deposit, under terms and conditions it says “TERMS AND CONDITIONS: On any job $1,000 and higher, a Late Fee of 15% of the total job price will be charged after 3 business days if the remainder of the balance is not paid in full. If payment is not paid in full at 5 business days from the day completed, 20% of the total job will be charged, and then daily at 20% of the total job price, unless otherwise written and signed by Owner. By paying the deposit, you are agreeing to any and all of these terms.”
Would this hold up in court or is there a law against that amount?
 


quincy

Senior Member
I own a landscape company that is an llc out of Indiana. I got approved for a commercial project which was about $15000. I emailed the director and told him our policy is 50% before we begin and the rest when the job is complete, he said that was standard for them. It took roughly 5 months to get my deposit so I was not confident about the remainder of it coming in the day we completed. About a week prior to completion, I emailed the director again and informed him when we will be complete and asked what he needs from me on my end to ensure we are paid at that time. He said to just send the invoice and he will get them processed. On the invoice I sent them for the deposit, under terms and conditions it says “TERMS AND CONDITIONS: On any job $1,000 and higher, a Late Fee of 15% of the total job price will be charged after 3 business days if the remainder of the balance is not paid in full. If payment is not paid in full at 5 business days from the day completed, 20% of the total job will be charged, and then daily at 20% of the total job price, unless otherwise written and signed by Owner. By paying the deposit, you are agreeing to any and all of these terms.”
Would this hold up in court or is there a law against that amount?
Do you have a written agreement for the job?

Are the terms and conditions for payment the same as agreed to when you started the job? Or were these just created for your final invoice?

And, no. The terms as you relate them here are unlikely to hold up.
 
This was sent for the deposit, prior to beginning the work. They needed invoices for the 50% deposit and that is what was on the deposit invoice.
Our work is itemized on another form and it was completed without any discrepancies.
 

quincy

Senior Member
This was sent for the deposit, prior to beginning the work. They needed invoices for the 50% deposit and that is what was on the deposit invoice.
Our work is itemized on another form and it was completed without any discrepancies.
A “math person” will be by to speak to the (unreasonable) amounts you are asking in late fees. I can tell you that you cannot change or add to the terms of a contract without both parties agreeing to the change or addition.
 
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I assumed I was probably stuck. I was hoping by putting “by paying the deposit you agree to our terms” that I may be able to have a leg to stand on.
 

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