Legal Question in Business Law in California

Re: Business Contract question

If you agree to this term, you'll never get paid. You might as well agree that you'll be paid when the cow jumps over the moon. How about 15 days after receipt of invoice with 18 percent interest on past due balances; and they pay your attorney fees and other collection costs.

Re: Business Contract question

There is nothing illegal about the term you describe. If both parties agree to it, it will be binding on them and enforceable in court. That, however, is a rather important "if".

If you already have a contract in place, then neither of you can change it without the other's consent (unless the contract expressly says you can). If you don't already have a contract and the client insists on a term you don't like, you don't have to sign. Either way, you can't be forced into a deal you don't want to make.

Re: Business Contract question

Illegal? No.

Foolish if you sign? Yes.

Re: Business Contract question

Although not illegal, it is certainly not in your best interests. As the vendor, you should have your own standard form contract that the buyer is required to agree to.

If you need assistance at creating one of thes, please feel free to contact me at the email provided by LawGuru or at our firm's site RulesofEmployment.com.

Scott

Re: Business Contract question

It's not illegal. You would be crazy to agree to it though, because your vendor would undoubtedly never pay you.