Legal Question in Business Law in New Jersey

Contractual payment delays

I did software consulting sub-contract work in Feb'04 for a client 'A' in Chicago area thru another contracting company 'X'. Client 'A' has made the payment for the work I did to contracting company 'X'. Company 'X' has paid only partial payment and they are delaying the payment for remaining amount. The payment from 'A' to 'X' was made in April'04; since then I have received only partial payment.

What should I do to expedite the matter?


Asked on 10/22/04, 2:19 pm

2 Answers from Attorneys

Alan Albin Alan S. Albin, Attorney at Law

Re: Contractual payment delays

It is not clear from your question with which of the companies you had a contractual relationship. It sounds most likely that you were a sub-sub-contractor for X. You say you did the work for A "through" X but this type of imprecision is why your question cannot be answered completely. Does this mean that you did not have any contractual relationship with A, only with X?

If you had no contractual relationship with A, only with X, then you probably have no legal recourse directly against A. As to whether communicating with A will result in X paying you what they owe you, that is a judgment call. However, you should be very careful before making any accusations against X to A, as derogatory statements (even if you feel they are justified) may be regarded as defamatory and in violation of whatever your contract with X requires.

You need to retain an attorney to actually review your contract with X, as well as other relevant documents and facts, to determine a course of action.

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Answered on 10/25/04, 7:11 am
Walter LeVine Walter D. LeVine, Esq.

Re: Contractual payment delays

Threaten or actually sue "X" with whom you have the contract.

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Answered on 10/22/04, 2:49 pm


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