Legal Question in Business Law in New Hampshire

Legal contract

On 12/06 my small business signed a contract to supply a customer with parts and labor for a job. There were no dates specified. The parts have gone up three times since December. We passed on the third price increase to the customer who refuses to pay. The job has not even been started based on their stalling. Are we obligated to fulfill the contract although with the price increases for the product, we won't make a dime? Thank you


Asked on 5/01/07, 1:03 pm

2 Answers from Attorneys

Herbert Cooper Law Offices of Jameson & Cooper

Re: Legal contract

Echoing the sentiments of the other attorney, it is hard to evaluate without more information, and it may not be in your best interest to reveal additional information in a public forum such as this.

On general principles of law, some questions which might arise include whether your contract required a deposit, whether you had prior dealings with the customer and whether you passed along the cost of increases in prior dealings or to the contrary, absorbed those increases and let your customer know that (so that he might expect the same in the future), and whether the customer, in reliance on the contract and with your knowledge, has put off doing the work with another company...etc.

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Answered on 5/03/07, 10:59 am
Bruce L. Dorner Dorner Law Office

Re: Legal contract

I would need to examine the contract documents in order to provide a precise answer. Since you do not indicate the nature of the parts or work, it is impossible to determine if the industry or trade customarily passes these costs along to the customer. You also don't mention when the work was supposed to start or be completed. Clearly, these are important factors which need to be considered in reviewing your question.

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Answered on 5/01/07, 2:25 pm


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