Legal Question in Business Law in Michigan
Paying Vendors
Is it legal to pay a company that works for us when we get paid for a job? The vendor gets paid when we get paid. Is that legal in Michigan?
Asked on 4/12/06, 10:50 am
1 Answer from Attorneys
Don Darnell
Darnell & Lulgjuraj, P.C.
Re: Paying Vendors
It really depends on the agreement you have with your vendors. Some contracts, construction contracts for example, expressly withhold payment to subcontractors until the owner has paid the general contractor. But, unless you have an agreement to this effect with your vendors, its probably a breach of contract to not pay them, or withhold payment until you get paid.
Answered on 4/13/06, 2:25 pm
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