Legal Question in Business Law in Maryland
Advertising 30 Day Cancellation Notice
Our company is being sued for non-payment on an ad ($1300) on grounds that 30 day written notice prior to publication, as per contract wasn't given. Our notice was 11 or 12 days late going out (met the ad deadline date for changes), and included a ''do not run the next month ad'' statement. We offered to settle
for roughly the amount that 11 or 12 days would cost (1300 divided by 30). They countered. Before we could counter offer, papers were sued. Are we wrong in offering to pay for the 11 to 12 days missed on the notice?
2 Answers from Attorneys
Re: Advertising 30 Day Cancellation Notice
You owe what you owe - if you missed the deadline and the contract says you pay the whole thing, that's what you owe. Were you wrong to try to settle for less? No - but they didn't have to take it.
Re: Advertising 30 Day Cancellation Notice
You were not wrong in making the offer to pay a prorated amount. This is a pursuit on your part to settle the dispute in good faith. If the terms of the contract require payment of the advertising fee if 30-day notice of termination is not given, the court may be hardpressed to go around the requirement especially if it is in writing. The courts have a policy of respecting the contracted choices of two independent parties.
It appears that you did give some notice (18-19 days). You have extended an offer to settle. Has the advertiser stated why he cannot take your offer? Do you plan on running more ads with the advertiser in the near future? If so, you may want to continue persuading the advertiser to settle or mediate the dispute. The advertiser may gain one more month's advertising fee from you but lose you as a customer for good. You need to drive home the point that future lost revenue is not in the advertiser's interest.
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