Legal Question in Business Law in Texas

Demand Letter

The individual is demanding payment for items our company (a Texas S. Corp.) did not purchase in the amount of $8,498.15.

He has these items in his possession and there is no contract binding the purchase.. He has demanded payment within 10 days or he will file a legal action in the District Court.

What type of filing is this considered in District Court?..


Asked on 12/11/01, 2:16 pm

3 Answers from Attorneys
Peter Bradie Bradie, Bradie & Bradie

Re: Demand Letter

The lawsuit will probably be either a breach of contract suit, or suit on an open account. I'd certainly respond to the demand letter, since failure to respond may be considered an acknowledgement. Are these for specially fabricated goods? Or are they materials that could be used or sold anywhere?

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Answered on 12/11/01, 4:05 pm
Robert Restivo Restivo Law Firm

Re: Demand Letter

Howdy:

He'll sue for breach of contract. Assuming that the items are "off the shelf" type of stuff (like office furtniture or supplies), and not something that is specifically manufactured to your company's specifications, an action on contract would be barred by the Statute of Frauds.

But, response to the demand letter is necessary. If they receive no response within a certain time, then the debt will be assumed valid.

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Answered on 12/11/01, 5:12 pm
Jay Printz Law Office of Jay D. Printz, PLLC

Re: Demand Letter

To answer your question, the type of filing will, most likely, be a breach of contract claim. However, if no one in your company purchased the items, something else is going on. I urge you to seek competent legal advise.

This is my opinion only and does not constitute legal advise. No attorney/client relationship is formed or contemplated.

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Answered on 12/11/01, 2:38 pm


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