Asked about 1 year ago - Mesa, AZ
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A lawyer from California keeps calling about a contract signed between our company and an advertising company, however my boss hasn't paid all of the money to the advertising company due to the fact that there was no performance value from the advertising company which did the advertising.
-The lawyer say keeps calling saying that the advertising company can pursue legal action anytime but he is willing to give a big discount for an out of court settlement.
-Also that it doesn't fall under the fair debt collection act since its a business to business contract.
-Also the lawyer is stating that performance is not a part of the contract. And the contract is non cancel-able.
Any advice as to how to proceed this legal matter would be greatly appreciated.
Thanks in advance.
With few exceptions, the court generally holds people to the terms of the contracts they sign. You probably need to have an attorney review the contract and tell you what your options are and whether your boss needs to pay the balance even if he's unhappy with the value he gained from the advertising.
Your rights and options depend almost entirely on the contract terms. Was the ad contract performance based? Frankly, I would be shocked if that was the case. The attorney is also generally right that if this is a business to business debt matter, it is not covered by the FDCPA. Your state may have different rules.
The advice is simple. Never ignore a demand letter. If you do not understand the contract terms, hire a local contract lawyer and they can advise you.
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