Legal Question in Business Law in Michigan

Failure to provide contract services

I entered into a service contract with (Corp A) in which they would provide 12 'referrals' to me within a period not to exceed 24 months. The contract period expired while I was only provided with 6 referrals. I sent a letter asking for a refund of the remaining portion of my fee. Unknown to me, Corp A went bankrupt during the contract period and (Corp B) assumed the clients from Corp A before the end of my contract period.

Corp B refused to refund the remaining portion of my fee claiming that a section of my contract with Corp A does not allow for this and that they have no liability since Corp A went bankrupt. Their refusal letter states that they have agreed to service the existing clients at no charge. Yet they have not provided service and the contract period has expired. I claim that since they would not cancel the contract and the information passed between the 2 corps was confidential in nature (defined in the contract) it represents an assumption of legal binding between them and me and they have violated the terms. I have filed suit against Corp B to recover damages. Is there a legal precedence that has been set for this type of case?


Asked on 10/27/99, 1:06 pm

1 Answer from Attorneys
Patrick Tracy Patrick J. Tracy, Esq, P.E.,

Re: Failure to provide contract services

Your case revolves around the contract between Corp A and B. If they assumed the rights under the contract they also assumed the duties. In addition you can claim to be a third party benificiary of the assignment contract. You need to hire an attorney to assist you. However I don't know the value of the contract that would make this worth it. To have an attorney involved in a matter such as this would cost you about 10000.00. In relation to the value of the agreement, is it worth it?

Precedent can be found by reviewing Michigan case law. Good luck!!

Patrick Tracy

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Answered on 10/28/99, 6:30 am


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