Legal Question in Business Law in Georgia

Promissory estoppel / Contract Question

I work for a small internet advertising company. I am not an owner, just an employee. We had an ''affiliate'' advertise on his own and agreeded to pay a certain amount of funds for sales. There was never a written agreement, in fact, at only one meeting did we ever give that affiliate, reporting on sales figures. There was a third party system used to track sales, however it unreliable. The real facts and figures come from our Merchant provider. Sadly, the product we were selling is being called into legal question, so we stopped selling it. The affiliate is demanding payment for sales he expects he has. Because I paid him, the affiliate is demanding information from me and is now looking to sue me Promissory estoppel. The business owner is also being sued. What's possible? The company has no desire to withhold funds from the affiliate. However, funds are being held by the merchant account provider... and we need time to let chargebacks and refunds come through the account. At this point we want to elevate the pressure, the affiliate is not willing to negotiate. What can we legally do?


Asked on 7/17/03, 9:26 pm

1 Answer from Attorneys
Jeff Kent Kent & Merritt, P.A.

Re: Promissory estoppel / Contract Question

From what you have posted, it is impossible to say. Is the affiliate suing for payment for products already sold or products he expected to sell in the future but now cannot because you are no longer selling the product? Assuming your company has hired an attorney to defend this case, make sure you give him all of the facts and potential claims. If suit has been filed and you do not have an attorney, get one ASAP. Even if suit has not been filed, it would be worth it for the company to get competent legal advice to protect the company, and the individuals involved.

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Answered on 7/18/03, 7:32 am


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