What to do if we have a contract with a large company and they are over 250 days late which is beyond contract stipulation?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
What to do if we have a contract with a large company and they are over 250 days late which is beyond contract stipulation?
We do audits for energy efficient programs offered by the Utility companies. We are paid based on the kilowatt hours saved to the end user. In our contract we are to be paid by the company we are contracted to 12 days after they are paid by the utility company. That should have been in July of last year. What kind of damages or penalties can be applied for this type of breach?
Asked on April 12, 2012 under Business Law, California
Answers:
Glenn M. Lyon, Esq. / MacGregor Lyon, LLC.
Answered 12 years ago | Contributor
Look to the terms of the contract regarding interest, late fees, penalties, liquidated damages, etc. If it is not addressed, you would have the right to the principal payment plus legal interest at the rate set by state law. Have your attorney send them a demand letter and allow them a chance to pay. If not, consider filing a lawsuit for all damages and costs, including attorneys' fees if the contract so states.
Hong Shen / Roberts Law Group
Answered 12 years ago | Contributor
It should be governed by your contract. If there is liquidated damage clause and is reasonable, then it should be the damage you recover. If not, you may claim your actual damage, incidental damage, maybe consequential damage such as losts opportunities. There is no penalty for contract breach.
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.