Am from India, Puducherry.
Am an equipment supplier to a Main contractor of a Principal Company. As my payments were not promptly paid by the main contractor I stopped the service to the main contractor. Since the Principal Company is the ultimate suffer they many times assured verbally for our payment and convinced to cont the service through the main contractor. Now the main contractor ran away with out notice. Can we claim the payment outstanding from the Principal Company...Because of Principal Company's assurance only we provided the service.
Jegan R Raja
2 Answers from Attorneys
In this situation, the agreement/contract executed between main contractor and the principal company and also your contract with the main contractor needs to be read to give an opinion regarding legal options for recovery.
Since you were assured by the principal company, even oral contract is valid in law and can be enforced. All facts are apparent that the main contractor has ran away and you were convinced by the principal company to continue your supplies, Hence all 3 of yours' contract converts to a tri partite contract from which you are eligible for payment from the main company. So please raise your invoices and make your claim.
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