Legal Question in Business Law in California

My corporation in California I signed a contract with a paparazzi agency in Mexico back in april 2011 for a year and it gets renewed automaticly I. I request multiple times a banking info to make monthly payment i didn't recieved it i stop using the service on October 2011 because i didn't want to owe too much but am still getting billinged every month I would like to continue with the service but i don't want to pay for the months I didn't use the service how can I do this without getting sued and if I do is my corporation liable in Mexico?


Asked on 8/22/12, 10:32 pm

1 Answer from Attorneys
Jim Betinol Withrow and Betinol Law

Whether you are required to pay for unused months within your 1-year contract depends entirely on the terms of your agreement. You should review your agreement to see if you have this ability.

Also, I would recommend that you review the agreement to see if there is an early termination clause. Since you are still currently not using the service and you don't want to keep getting billed, you may want to terminate early or renegotiate the terms. However, this decision will depend entirely on the contract term, as some contract can cause you to incur a early termination fee.

If you decide not to pay the bill, you are likely liable to the Mexican company either in Mexico or in the US, depending on where they decide to bring the contract breach lawsuit. I highly recommend that you contact me or another business attorney in your area.

Goodluck,

Jim

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Answered on 8/23/12, 7:02 am


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