Legal Question in Business Law in Tennessee
Misrepresentation
A person in South Carolina contacted my business in Tennessee to supply his business with goods. Several phone call were exchanged in the process relating to the goods, prices, and terms of the sale. All of which were ultimately agreed upon. I supplied the goods and have signed delivery receipts. Invoices and statements have been sent but no payment. The person in South Carolina does not have a business license and according to the response from our phone call does not intend to pay for the goods. What solutions do I have to collect the money? Is this not fraud as well as theft? Doesn't crossing the state line create additional legal problems for the thief?
2 Answers from Attorneys
Re: Misrepresentation
Fraud would be a civil remedy. Theft is a crime reportable to the DA. It sounds as though you have a classic case of breach of contract. Your breach of contract remedy is probably what you need to pursue. Fraud and misrepresentation are remedies in tort as opposed to contract and if the fact pattern is strong enough, you may very well have causes of action for fraud and misrepresentation, but in court, they are much harder to prove than your straigt forward remedy of breach of contract.
Re: Misrepresentation
There is a fine line between fraud/conversion and breach of contract in the fact pattern you present. In order to prove fraud or theft you will have to prove that at the time he made the order or accepted the goods that he did not intend to pay for them.
Most courts are going to be predisposed to treat this as a breach of contract case unless you have powerful evidence of the wrongdoer's intent at the time of making the order or accepting the goods.
The state line issue might creat some federal criminal problems for the buyer/thief. The problem is that usually criminal penalties, such as imprisonment, make it very difficult for you to get paid.
You have recourse in the civil courts and you should seek legal advice soon. Thanks. If you have any questions please feel free to contact me at 800.403.7868 or [email protected].
Related Questions & Answers
-
Dissolving a partnership? In late 2001 I est. a partnership with a friend... Asked 4/10/02, 4:56 am in United States Tennessee Business Law
-
Work related email being sent to home email address at last managers meeting were... Asked 2/09/02, 11:17 pm in United States Tennessee Business Law
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
