Legal Question in Business Law in California

Contracts and Agreements

I am an independent Contractor. The company I contracted with terminated our contract. I submitted the final invoice with a notice that the late charge fee would be increased from 1%, calculated weekly to 10%, calculated daily until the balance is paid in full. I submitted a second request for the final invoice and included the increase in the late charge fee. The company contacted me and has agreed to pay the unpaid invoices but not the increase in late charge fees because it was not in my contract. I replied that because I am no longer under contract with them that I had the right to enforce my increased late charge rate because they failed to pay the unpaid invoices in a timely manner. Unpaid invoices date back to February, 09. It is now April 09. What recourse do I have?


Asked on 4/08/09, 5:45 pm

2 Answers from Attorneys
Terry A. Nelson Nelson & Lawless

Re: Contracts and Agreements

Yeah, nice try. You may have an enforceable agreement, but are not entitled to unilaterally change the terms at your whim. Collect what is due under the agreement.

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Answered on 4/08/09, 6:15 pm
Adam Telanoff Telanoff & Telanoff

Re: Contracts and Agreements

I agree with Mr. Nelson.

You had a contract, you are stuck with those terms.

By the way, I hope that interest rate is annual, otherwise you may be in trouble for usury.

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Answered on 4/08/09, 6:35 pm


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