Can a company legally withhold payment to a vendor after services have been rendered?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Can a company legally withhold payment to a vendor after services have been rendered?
My company an LLC was previously under contract with another in which they contracted with my company to provide services and payment was determined by commission earned and fee-for-services rendered. After submitting the final invoice in the course of terminating the contract, the company claimed it was not going to pay the final invoice until a complete
Asked on October 5, 2019 under Business Law, Florida
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 4 years ago | Contributor
No, legally, they cannot simply decide to withhold payment, even if the want to or claim they are going to do an "audit and investigation": they must pay you in the time frame indicated in the contract. If they don't pay you, your recourse is to sue them for "breach of contract"--for violating their contractual obligation to pay--for the money.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.