Legal Question in Business Law in New York
I am having an argument with my web designer. She keeps threatening to go to arbitration because I am behind 2 months on the payment plan. Im not too happy with the site and have been tying to get them to make improvements. They will do it but want me to pay the entire outstanding balance at once- which I dont have. If we go into arbitration I feel I have a strong enough case to argue incompetence and to not take the site at all. I want to know if I loose and I cant pay all at once what will happen?
1 Answer from Attorneys
It depends on the terms of your contract. Under basic contract law, an individual does not have to make payment upon a material breach of a contract. Generally, material breach is no performance. If there is not a material breach, the court will look at the work performed under the contraction. If the contract is for $100 and is 1/2 performed, the court will award $50.
Unles previously agreed to by the parties, tasts and smells are not reasons to declare material breach of contract.
Mike.
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