Legal Question in Business Law in Florida

overdue commercial account

A commercial customer owes us $20M since Aug/Sept 2008. Terms are Net 60, payments are slow, irregular. We hold about $20M of their inventory and they are demanding that we return it to them. Can we legally hold these goods for collateral until payment is made.


Asked on 3/24/09, 11:08 am

2 Answers from Attorneys
Hunter Chamberlin Chamberlin Butler & Crowe, P.A.

Re: overdue commercial account

Whether you can do that or not depends on many factors. For instance, if you have a written contract, that will govern. If there are ambiguities in the contract, or you do not have one, it may depend on any prior transactions.

I would be interested to discuss the situation with you in greater detail. Please feel free to contact me via e-mail or on the phone at your convenience.

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Answered on 3/24/09, 11:15 am
Alan Wagner Wagner, McLaughlin & Whittemore P.A.

Re: overdue commercial account

It depends on what your contract says. With that much at risk, your agreement should cover this contingency. Check the agreement.

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Answered on 3/24/09, 1:09 pm


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