Legal Question in Construction Law in Indiana

Vendor payments

if you have a contract with a vendor and you pay some of his suppliers direct for him. How do you account for this. Should it be posted against the contract and his 1099 should show the total amount? or does it really matter?


Asked on 2/15/08, 4:18 pm

1 Answer from Attorneys

Mark Voigtmann Baker & Daniels

Re: Vendor payments

At the least, you should always make such payments in the form of a joint check or have the vendor acknowledge in writing that the payment is being made with his permission. Naturally this should count against whatever contract amount you owe him. It is still regarded as payment to the vendor so no other actions would need to be taken.

NOTE: This communication is not intended as and should not be interpreted as legal advice. Rather, it is intended solely as a general discussion of legal principles. You should not rely on or take action based on this communication without first presenting ALL relevant details to a competent attorney in your jurisdiction and then receiving the attorney's individualized advice for you. The foregoing discussion is not intended to, nor does it, create any attorney-client relationship, nor does it constitute legal advice to any person reviewing such information, nor will it be considered a privileged communication.

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Answered on 2/17/08, 12:39 pm


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