Breach of Independent Contractor Agreement

I have an independent contractor agreement with a customer that outlines the services and terms of our relationship. Within this contract there is a section called

Asked on April 19, 2017 under Business Law, Colorado

Answers:

S.L,. Member, California Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

From your description of the contract, it appears that your performance is in lots which means that you do work and you are paid on the first.  Then you do additional work and are paid on the fifteenth. 
When there is a contract where performance is in lots, a breach of contract is limited to that particular portion of the contract.  In other words, if payment is due on the first and is late, only that part of the contract is breached and it does not affect future performance and future payment.  So, you can only sue for that particular breach of the contract, but would have to continue with your performance (work) regarding future work and payment.  If another payment is late, it would again be a breach of that item without affecting the other contract provisions.  Therefore, you would still have to provide the 30-day notice of termination and be subject to the non-competitive provision as the rest of the contract remains enforceable.
If the contract had been written so that you had an entire job to complete and it wasn't in installments or lots, then if payment had been late, you could sue immediately for breach of the entire contract and the other provisions (30-day notice and non-competitive agreement) would not be enforceable. 


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