If I had a verbal agreement with a GC to pay a percentage of payment for work done by me for a corporation, can the corporation deny me payment if I didn’t have a POA to sign for the GC?

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If I had a verbal agreement with a GC to pay a percentage of payment for work done by me for a corporation, can the corporation deny me payment if I didn’t have a POA to sign for the GC?

This percentage was to cover general liability and workers comp. I was sent purchase orders directly from the corporation and I signed them and did the work. Now the corporation is refusing to pay me because I had no power of attorney to sign purchase orders for the GC. Did I need a power of attorney? Can they legally refuse to pay me? Can I file liens?

Asked on July 11, 2015 under Business Law, Texas

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 5 years ago | Contributor

If I understand your question correctly, you contracted with the GC and the GC was contracted with the corporation--you did not have an agreement directly with the corporation. If that was the case, then you have no recourse against the corporation, since you were not contracted with them. Your recourse would be against the GC, which had agreed to to pay some percentage or amount to you. When A contracts with B who contracts with C to do the work, even if the ultimate source of money is payments from A, if C is not paid, it has to seek the payment from B, which the party with which it is in a contractual relationship.

If the above is not the situation, please repost your question with some additional detail about the contractual and work relationships, so we can better help you.


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