What to do about an alleged breach of contract if my business performed services for a third party through another company?

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What to do about an alleged breach of contract if my business performed services for a third party through another company?

The third party wanted to eliminate the middle man whose employees had caused them to require refunds to their customers several times. In light of his poor performance and my company’s stellar performance, the third party approached me directly and asked if we would be willing to perform the work directly. I agreed and the middle man was eliminated from the equation since my company was performing all of the work anyway. There is/was no written contract between myself and the middle man. The middle man is refusing to pay me a tremendous sum of money he was paid for services my company performed. He claims I broke our contract (doesn’t exist) so he will keep payment.

Asked on July 10, 2013 under Business Law, Louisiana

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

You would sue the middleman for breach of contract: even though you say there was no contract, there *always* is one--even if only an oral/verbal agreement to pay you a certain amount for performing certain services. If not paid pursuant to that agreement, you would sue for its breach. You would need to prove the terms of the agreement--you can use testimony, emails, text messages, other correspndence, etc.--and that you did the work.


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