Legal Question in Criminal Law in California

Re: Am I on Firm Legal Ground?

The fact that your consultant is married to your buyer probably doesn't mean you have violated any laws. At the same time, it doesn't change the fact that you have a contract with her. Had she concealed her connection to the buyer you might be able to get out of the agreement on the basis of fraud, but the fact is that you went into this with your eyes wide open.

What exactly did you agree to? Did you agree to give her her percentage for a specific amount of time? Did your agreement say she would only be paid while she was providing services? Or did it essentially say you will pay her a percentage of your sales regardless of when they were made?

If you and she wound up in court the judge would probably not find that you must pay her forever. You can try to just stop paying her, let her sue you and have the court decide whether you have paid enough. Even if she wins the case, she will only be able to collect some or all of the commissions you have withheld unless your agreement says she can get more. You thus have relatively little to lose beyond the legal fees and costs of defending a lawsuit -- unless you lose your customer.

Can her husband decide to stop doing business with you in retaliation for cutting off his wife? Yes. He's supposed to act in his employer's interests, but if he knows a competitor of yours that can offer similar or better products and services at comparable prices then there's no reason he should have to stay with your company regardless of your business relationship with his wife.