Legal Question in Business Law in Colorado

Trying to pay a vendor who is also a customer through credit

We currently have a customer who owes us more than 20k. They are also a vendor to us and a holder of our sublease. We owe them 5k including some rent money. Can we legally pay them the money that we owe them through applying credit towards the invoices that they owe us for. They are demanding cash payment only for the funds that we owe them and we want to pay our bills by applying credit to some of their oldest invoices.


Asked on 11/10/02, 7:19 pm

1 Answer from Attorneys
Eric Fisher Law Office of Eric A. Fisher. LLC

Re: Trying to pay a vendor who is also a customer through credit

If you withhold rent, you risk the landlord starting an eviction action, at which time you may be able to counterclaim for monies owed, but the court could order you evicted and schedule a future trial on the issues of monies owed. If you bring a law suit for monies owed first, you may be able to forestall an eviction until the matter is decided.

Setting off money owed against money you owe may work better if rent is not an issue.

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Answered on 11/11/02, 12:47 pm


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