Mou termination and damages liability?

[witsinc]

What is the name of your state (only U.S. law)? Missouri.

My company signed and MOU with another company. In the Mou there was a clause stating that if they could not get their debt down to $5000 the contract would terminate on XXX date. The reason they did not get that debt down was due to their negligence and lack of accountability. As a result we incurred debt of our own and billd that they were supposed to pay. Can they be held liable for damages during the course of the contract? I realize any damages adfter may not be able to be a part of the suit since they happened after the termination date but what about those that happened while it was in effect?

 

[quincy]

What is the name of your state (only U.S. law)? Missouri.

My company signed and MOU with another company. In the Mou there was a clause stating that if they could not get their debt down to $5000 the contract would terminate on XXX date. The reason they did not get that debt down was due to their negligence and lack of accountability. As a result we incurred debt of our own and billd that they were supposed to pay. Can they be held liable for damages during the course of the contract? I realize any damages adfter may not be able to be a part of the suit since they happened after the termination date but what about those that happened while it was in effect?

Where is this other company located?

Did you sign a contract or just the Memorandum of Understanding?

If you signed a contract, is there anything in the contract that your company agreed to and signed that addresses failure to get the debt down due to the other company's negligence or lack of accountability? If not, there should have been.

If your losses are significant, you should have an attorney in your area review the MoU and/or the contract in its entirety and review your company's damages and review the facts and failures that eventually resulted in the termination of the agreement. If you only signed a MoU, it needs to be personally reviewed to see if it is legally binding as written.

It really is vital to have all terms of a contract reviewed by a professional prior to signing to make sure that nothing important is overlooked.