Legal Question in Business Law in Massachusetts
Is this legal?
A friend put up appx. $10,000.00 to cover printing costs for a book I'm writing. He gave me a cashier's check made out to the printing company. I mailed it to them. I signed the contract with them. My friend was not involved or known to the printing company in any way. I just found out today, that he somehow got them to mail him the check back to him weeks ago, and six months into the project without my knowledge. The printing company never even told me either. All they said was it was drawn from him, so they sent it back to him, because he claimed the project was delayed {a lie}. First, is the printing company responsible for returning my check to him without alerting/informing me? Also, can I sue him for breach of contract?
1 Answer from Attorneys
Re: Is this legal?
This is a gray area. But given what you said, where the contract is between the two of you, and you provide the check to them, regardless of source, they are obligated to go through you for any financial or contractual issues. When they unilaterally act to undermine the contractual relationship, including diverting funds given to them by you, then I belive they are liable for the amount they wrongfully disbursed.
If you want to contact me about this matter, I shall be in the office tomorrow morning.