Legal Question in Business Law in Massachusetts

Breach of Contract

My company and another (name it ABC) signed a contract whereby anytime ABC does software consulting development work for a licensed customer of my company, ABC is to pay my company 20% of the total service revenues paid by the customer to ABC.

In an attempt to remove my company from the scenarion, rather than going directly to the customer, company ABC now sends it consultants through a third company (XYZ) who in turn bills the customer. Company ABC, however, still has it's consultants working for the my original licensed customer.

The customer isn't interesting in getting involved since they are getting the work done they require.

Any advice on this matter is deeply appreciated.


Asked on 5/12/05, 10:31 am

2 Answers from Attorneys
henry lebensbaum Law Offices of Henry Lebensbaum (978-749-3606)

Re: Breach of Contract

Send them a stern warning, and notice them of anticipation of suite. You may also consider a 93a action for fraud & misrepresentation;

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Answered on 5/12/05, 10:35 am

Re: Breach of Contract

Without reading the contract and knowing if XYZ is controlled by ABC, no difinitive answer may be given.

However, you should send them a letter demanding they cease and desist from this action and to account for all fees earned through xyz and pay you as required under the contract. You should also tell them they are in violation Chapt 93A and as such may be subject to treble damages and attorneys fees if you bring suit.

Please feel free to contact me if you have more questions. Also, you might want to have your contracts reviewed so they deal with attempts to circumvent agreements in the future.

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Answered on 5/13/05, 5:02 am


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