How can I get out of my contract for a point of sale systemif I never received the right equipment or functioning software?

I agreed to finance a point of sale system for my restaurant. I agreed to receive new hardware and pizzeria software for our dine-in take-out and delivery business. It has now been 2 months and I have only received refurbished equipment with non-functional software. I have talked to the finance company and they prepaid the other company for my hardware and software and therefore say that I am liable. How can I get out of this contract? I was promised that I would have my system 2 months ago, on the day that we opened; I still haven’t received anything as promised.

Asked on November 7, 2011 under Business Law, Michigan

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

The way to set up a basis for you to get out of the contract that you want out of is to send the vendor a written letter advsing it of its breach of contract with you setting forth as many points in the letter supporting the breach. Keep a copy of the letter for future reference.

In the letter give a set date to perform and if no compliance, advise the vendor that you will deem it in breach of the agreement and as a resuly to are rescinding the contract due to the vendor's failure to perform.

You might consider consulting with a business attorney further on your question to review the contract or even write the suggested letter to the vendor.


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