Customer withholds $52,000 for claim of approx. $ 400.00
A customer cancelled a service contract with our company and is now withholding the money he owes (for a machine, oil, parts, services) stating that a list of To-do-things has to be completed first before payments are released. The owed amount is more than $52,000, the to-do things have partially been completed, the leftover work accounts for approx. $ 400. Is this legal?
Asked on 5/08/08, 3:20 pm
1 Answer from Attorneys
Glenn M. Lyon, Esq.
MacGREGOR LYON, LLC, Business Attorneys
Re: Customer withholds $52,000 for claim of approx. $ 400.00
The exact language of the contract will control whether the customer has the right to demand the to-do list before paying the rest of the money. I would recommend having an attorney review the contract. You might also have some "off contract" claims even if you are required to fully complete the list before payment that will entitle you to some payment.
If you would like to discuss any issues further, please feel free to contact my office. My contact information is below. Thank you.
The foregoing is general information only, not specific legal advice. No attorney/client relation has been created or should be implied.
Answered on 5/08/08, 3:41 pm
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