Legal Question in Business Law in Maryland

non paying customer

We are a small IT company in Baltimore. Lately, I seen to have a problem with customers requesting work done, and not coming back for months if at all to pay and pick up there computer. At what point do I have the right to sell there PC to cover there unpaid balance. Am I required to have them sign something up front before I start doing this? I only have this problem with residential customers. The cost of parts are being fronted by us. The amounts are usually around $100, a customer drops the pc off, we fix it, they pick it up. It just seems harsh to have to have every residential customer sign a contract over a $100 bill.


Asked on 5/22/08, 11:40 pm

1 Answer from Attorneys
G. Joseph Holthaus III Law Offices of G. Joseph Holthaus

Re: non paying customer

In my prior response I indicated that applying a set of routine business practices may decrease losses. Contracts can be prepared based to accomodate to your business purpose. You may choose to do business without contracts, invoices, receipts and other customary documents ordinary to commercial transactions; however, doing so opens your business to many claims as well as loss of revenue from non-paying customers.

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Answered on 5/23/08, 11:42 pm


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