Legal Question in Business Law in Oregon
Refunding Payment
We are a subcontractor in the state of Oregon for a satellite installation company. Our business is organized as a LLC. A company we use to work for has been cutting us checks for work we didnt do. I tried contacting them about it and havent gotten any response. If I cash the checks can they demand the money back? If so If I close the company they were paying and opened a new one would I be liable to give the money back?
2 Answers from Attorneys
Re: Refunding Payment
You know the money does not belong to you. You should not be cashing the checks. That would be dishonest and possibly illegal. Of course they can demand the money back.
Closing the company and reopening another would not (and should not) shield you from any acts of dishonesty. In fact, it would probably compound your problems.
I suggest you think carefully about how you wish to conduct your business affairs. Having worked for small business owners for the last 20 years or so, it seems to me you are heading down the wrong path.
Very truly yours,
Re: Refunding Payment
Return the checks. If you did not do the work, then you have no right to the money. If your contract with the installation company says something different, then there may be a different answer.
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