California | Business Law
Legal Question
Oral Contract and non-payment of invoices
My consulting firm worked on a project without a signed purchase order
for two months with a total of $30k in invoices. The client was fully
aware that we were proceeding with the project and met with us along
the way, including three design reviews. Now our invoices are over 120
days old, and they refuse to pay because we have no signed purchase
order.
At the end of the 1st, phase we had a design review and submitted the
an invoice, which was accepted and in process toward being paid (we
thought). We then commenced work on the next phase of the project. A
few days after we called to set up the design review at the end of this
phase, we received a call instructing us to stop work on the project
because there was no signed proposal. We went ahead and had the
design review (work was already complete) and delivered the work.
The client has agreed to pay one of the invoices ~$15k (which I did not
accept). Our hard costs on the project were ~$20k (which we've paid out
to our sub-contractors).
My questions are: Do we have a enforceable oral contract? What is the
best course of action at this point?
Share This On:
