Legal Question in Business Law in Oregon

Contract Termination -- Bill Collector?

A client of--name removed--Enterprises, Inc. dba eTech Business Solutions terminated a $20,000 contract after $10,000 had been paid. Services far in excess of $20,000 were rendered to the client, yet the client is demanding return of the $10,000 paid. The client has now sent the $10,000 to a bill collector as a debt owed the client. This is not right and, frankly, I believe eTech has some recourse for the amount of work completed before termination of the contract.

Just looking for some clarity regarding this. It's hanging over my head (he's included plenty of threats, including coming after me personally for fraud, etc.) and I'd like to dispose of the problem as soon as possible.

Thanks in advance,


Asked on 1/08/01, 5:46 pm

2 Answers from Attorneys
Michael Zusman Evans & Zusman, P.C.

Re: Contract Termination -- Bill Collector?

As Mr. Meek alluded to, one is generally entitled to recover the reasonable value of one's services without regard to the existence of a contract. The contract itself may also specify the parties' rights (and responsibilities). I wonder if some facts might be missing here. For example, is the other party claiming that the services performed were deficient in some way? The hiring of a "bill collector" is a curious twist. They are usually disinclined to become involved in bona fide civil disputes.

Feel free to give me a call at 503-241-5550 to discuss this further if you wish.

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Answered on 1/12/01, 11:23 am
Daniel Meek Daniel W. Meek

Re: Contract Termination -- Bill Collector?

Your rights depend primarily upon the language of the contract. Perhaps the contract expressly allows the client to terminate at will. Perhaps the contract states that you are not entitled to be paid anything until the entire project is completed. If the client breached the contract, you may be entitled to damages for breach of contract, or you may be entitled to recover money from the client "in quantum meruit" for the value of your services rendered.

I suggest that you contact an attorney, as the amount at stake is substantial.

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Answered on 1/12/01, 4:46 am


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