Legal Question in Business Law in Georgia

Contract Question

My 3 member LLC entered into an agreement (contract) for 2 of the members to perform consulting services. The 2 members bought airline tickets and paid for hotel and rental car to perform these services. The contract stipulated that a 10 day written notice could terminate the contract (for any reason). At the end of the first week, the two felt that the project (where they were working) was not something they wanted to continue working on and went to the president of the company through which they were working (a different company - I'll call them the third party consulting company) and orally gave a 10 day notice. He asked that they not return any more. The two consultants were performing to the satisfaction of all parties and there were no compaints. Now, this third party consulting company does not want to pay for the expenses incurred. This third party consulting company asked that the two members of my company book the airline tickets, gave them the name of the hotel and rate to ask for, and the rate to ask for at the rental car company. Now this third party company is not wanting to pay for these expenses. We don't care about charging for our time, we simply want the expenses paid. What recourse do we have?


Asked on 8/08/06, 5:08 pm

2 Answers from Attorneys
Glenn M. Lyon, Esq. MacGREGOR LYON, LLC, Business Attorneys

Re: Contract Question

I would recommend a demand letter for the expenses from an attorney and, if they don't respond favorable, file suit. Also, look for an arbitration or some other alternative dispute resolution clause in the contract.

If you would like to discuss any issues further, please feel free to contact my office. My contact information is below. Thank you.

The foregoing is general information only, not specific legal advice. No attorney/client relation has been created or should be implied.

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Answered on 8/09/06, 12:16 pm
Scott Riddle Law Office of Scott B. Riddle, LLC

Re: Contract Question

We do not have your contract, and we don't know the terms of the agreement with the "third party." Read it carefully. However, based upon your post I can certainly understand why they don't want to pay for expenses when the two people quit after a week. I would not want to pay either, and would consider it a very poor business practice if a company actually wanted to charge for expenses when their people quit after a week (whether or not it is in the contract).

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Answered on 8/08/06, 5:16 pm


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