Legal Question in Business Law in Florida
independent sales rep
I was hired as an independent sales rep for a Florida based company. My one-year contract states that the compensation is commission and I pay expenses. For the first 90 days, the company offered a stipend (draw verses commission of $2k per month plus expenses up to $1k monthly) to be subtracted from future commissions.This is verbal and not in the contract. After 70 days, they fired me without giving the contractional 30-day notice and are asking for the $4k draw money to be returned. Do I owe this money or should this be considered start up pay for my efforts in trying to build business for the company?
1 Answer from Attorneys
Re: independent sales rep
What are your reasons for believing this comes under Florida law? Does the contract say so explicitly? Did you work in Virginia or Florida? Did they contact you in Virginia or did you contact them in Florida? I am only licensed in Virgina and cannot advise you on Florida law. But the first question is to check which State's law applies.
Furthermore, you seem to be saying that they gave you money OUTSIDE the contract. That is, it is not mentioned in the contract.
However, you should study that very carefully. It is likely that buried in there somewhere is something about repaying advances. But check very carefully.
If there is truly nothing in the contract about the advances, then it may be OUTSIDE the contract, and therefore under Virginia law.
Since they breached the contract by not giving the required notice, they may have forfeited their claim to recover the money.
I would try to draw them out by writing them letters that DO NOT SAY ANYHTING from your side (resist the temptation!!!) and simply ask them to explain. Simply say "Can you please explain your request. I understood that I was entitled to 30 days notice canceling this contract. What is the basis for your request at this time?"
They may have some reasons you are not aware of. Or they may simply dig themselves into a hole.
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