Legal Question in Business Law in California

Re: Licensing Contract

You certainly can sue the company for non-payment. However, the details of how you should proceed and your exact remedy depends on the specific terms of the contract. I am assuming you have a written contract. If not, then the oral agreement would still likely be enforceable.

Whether or not the company has filed for bankruptcy protection is also relevant.

Unless you are familiar with contract analysis, you should consult with an attorney to counsel you and to take legal action against the company.

D. Alexander Floum is an experienced attorney and a law school professor.

The Schinner Law Group is a full-service law firm, providing assistance in business, corporate, tax, litigation, contracts, intellectual property and related areas of law.

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Re: Licensing Contract

If the company cannot continue to "manufacture" because of a "lack of funds" and goes out of business, you do not need to do anything to "dissolve" the contract. However, depending upon what your "contract agreement" says, this failure is likely a breach of contract, for which you can sue to recover your damages, particularly if you have not received the money you are owed for past sales.

A great deal more information is really needed to adequately answer your question. You would probably benefit greatly by having an attorney look at whatever documents/contracts you have, and discuss the facts of your situation with you.