Legal Question in Business Law in Georgia

I entered into two seperate contracts with the same company for separate services. One contract was for facility rental and the other was for recording services. I was unable to make the final payment for both contracts by the contract deadline and both were breached. The company accepted a payment plan I suggested, but wants to hold my recorded material from the recording contract until I pay the balance due for both contracts. I disagreed with them holding my recordings until both balances were paid and told them so in writing. I have made 3 of 5 payments. the first two were to pay off the amount due for the recording contract. When I gave them the cashiers checks the FOR line stated that they were to pay off the recording contract. I contacted the business again today and asked for my recordings since I have paid off the recording contract balance and they said that they would still hold it until the balance was paid for both contracts because I used their facility to do the recording and the two were directly related. Is this legal? The contracts, though breached, were for two separate things. How can they legally withhold the deliverable for the recording contract that has been paid until I finish paying the facility rental contract? There is no clause in either contract that says they can do this. Please advise on my options, if any.


Asked on 4/13/10, 7:54 pm

1 Answer from Attorneys

Glen Ashman Ashman Law Office also dba Glen Ashman Attorney

There is no way anyone here can answer you. Presumably you didn't sign the contracts without a lawyer, so call the lawyer who advised you then as he will be familiar with the documents.

As a general note, even if you had a right to sue, that would probably be foolish, as you'd open the door for them to sue you for the breach. (Their position frankly sounds pretty reasonable, and if a post from you tends to support their position, you probably should start thinking about curing your breach, not making things worse and more costly).

Writing things on a check likely doesn't change you being in breach. You should have seen a lawyer before doing that.

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Answered on 4/18/10, 9:05 pm

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