Legal Question in Business Law in California

Short Contract Question

I'm an independent contractor working exclusively with a particular company. They set me up with groups of people to teach, the people pay the company, and the company pays me.

I was loaned teaching aids through the company via a contract that said the items were on ''loan'' until I decided to end my stent with the company. At that point the contract says I must return the items in the condition they were received -- that's all the contract stated... very simple and short.

While on assigment - at a place I later found out was very dangerous -- the teaching aids were stolen out of my car. My question is this... AM I LIABLE to reimburse the company for the full, brand new PRICE of the teaching aids in this situation -- when they were stolen at a place the company sent me to!?

The company says they have no insurance to cover the items that total over 600 dollars (They are CPR dummies) and I filed a police report.

Thank you for your help - I'm a college student with little funds to spare and so any advice would be most useful as they want me to go to small claims court over this issue.

Best Regards.


Asked on 9/29/06, 12:44 pm

1 Answer from Attorneys
Edward Hoffman Law Offices of Edward A. Hoffman

Re: Short Contract Question

Unless the company is actually responsible for the theft or should have known it was likely to happen, you are on the hook.

You're not to blame for what happened, but the fact is that you signed a contract in which you agreed to return the dummies in their original condition. Because you can't do that, you are in breach of the contract. Being in breach does not mean that you are morally responsible for what happened; it just means you didn't perform as agreed. This is true even though someone else is at fault.

Most companies would be reasonable under these circumstances and would work out some sort of compromise. Hopefully the company you were working for will take this approach.

Good luck.

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Answered on 9/29/06, 12:57 pm


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