Are they liable for payment?
Originally I used a company to embroider a logo for one of my customers (I was in embroidery too). I met with one of the owners of the company I used to use to discuss one large account that I had. We agreed verbally to a commission strategy that would pay me $2/shirt and $1/beach bag. On two occasions, I received these commission checks. I gave him my Soc. Sec. number for tax purposes. I received a call from the customer one day asking for the invoice to be faxed (which is done by the company embroidering the shirts), but I was never told of the order. I got suspicious and contacted the customer for all the POs for the year and found that there were at least three POs that I had not been paid a commission. When I called the company (the same person that verbally committed to me), he finally responded that they have decided that they do not pay commissions or for accounts. He was not authorized to make the commitment. They decided 6 months ago. There was one other conversation with the company where I asked him point blank if he had received other shirt orders and he told me no, but the info I received showed otherwise.
Do I have legal grounds to go after the commission? Can they stop like this without notification?
1 Answer from Attorneys
Re: Are they liable for payment?
You had a valid oral agreement. Sue them for breach of contract and fraud.
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