Legal Question in Business Law in New York
subcontractor
I subcontract delivery services to
a local company. The company
is losing clients, and I am concerned that I might lose my
biggest customer, which I have
serviced for five years now ex-
clusively, even before the present
company took over. I would like
to submit a bid to the customer
under my own business name
as they are seeking a lower bid;
the customer is concerned about
a conflict. The company for which
I deliver does not pay my taxes;
I pay all my own taxes and
expenses. Can I make a bid
to the customer under my own
business name without incurring
risk of legal trouble with the
current company for which I
subcontract?
1 Answer from Attorneys
Re: subcontractor
If a written contract does not exist between you and the local company, you can make a bid to the customer. However, you still must be careful. The bid to the customer should not mention or make any negative references to the local company.
Mike.
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