Legal Question in Business Law in California

What are the laws surrounding Statement Of Work contracts in California? We are doing a lot of work for a large well-known company and the rule, though it's not in writing is that if you want to get the work, you have to actually complete the job sometimes months before you even get a Statement of work to sign. This puts us in quite a pinch because we have to wait several months after we complete a job to get the statement of work... then another couple weeks till we get a PO then another Month or two before we get paid. Still awaiting payment on $80k for a project that was completed in September of 2011.


Asked on 1/23/12, 9:11 am

2 Answers from Attorneys

Well we can't give you a treatise on the law of service contracts in California here. The short answer is that whatever the parties agree on is legal as far as scope of work and payment. Verbal contracts are enforceable, whether later memorialized in writing or not, and payment terms are between the parties. So you have a right to payment for work done as agreed, but when and how you get paid is up to to you and the customer/client.

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Answered on 1/23/12, 9:54 am
Michael Stone Law Offices of Michael B. Stone Toll Free 1-855-USE-MIKE

Get one of those little smiley-face rubber stamps that say "90 Days Past Due" and send them another statement. If it goes another 30 days, have an attorney write to them.

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Answered on 1/23/12, 4:00 pm


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