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October 3, 2013 at 4:57 am #985172Up::0
Hi All,
I know I am going to take this matter to QCAT, but as they cannot give legal advice, I was hoping someone may have had a similar situation and can assist.
I have been providing services for a company. I was dealing with one individual the whole time, from quotation right through to approval etc. We have done a number of mailouts over the course of 2 months.
So at end of August, I issued the first invoice, which was duly paid by the company. At the end of this month, literally as I was about to issue the next invoice, I received and email from my contact, advising that they no longer work for the company and to direct all invoices to the state manager.
When I followed these instructions, I was told that the employee was responsible for all their own marketing, and that as I had no signed agreement from or discussion with anyone other than this employee (though I have a string of emails from that employee providing approval to proceed)
So now the company is refusing to pay the invoice, even though they paid the invoice for August, and are stating that the invoice is the responsibility of the employee. The employee is disputing this as well, saying he never agreed to cover the marketing costs for the business.
My feeling is that as the employee was acting under the company, and the company actually made payment for the first invoice, that showed their intent and understanding of the services involved, and that I will need to pursue them, not the employee through QCAT.
What a pickle!!!! Can anyone offer any comments of similar situations or any legal bods have a position I should follow on this?
October 3, 2013 at 5:48 am #1151821October 3, 2013 at 5:56 am #1151822Up::0Gee thanks for the help John!!! (I say this tongue in cheek and with a smile on my face)
Yes I know that payment upfront is the ideal scenario, but I can’t allow the few to spoil a good system for the many – I refuse to allow a few unethical people to ruin my relationships with many great and honest businessesOctober 3, 2013 at 6:16 am #1151823Up::0I would have thought the company was liable, regardless of any “in house” deal with the original employee.
The fact they paid it initially, seems to confirm that.
Was their a purchase order, or any company details, logo etc. on the emails?
Sounds like the employee, possibly wasn’t an employee, but some sort of commission agent, maybe? Can’t see any other scenario as to why the company wouldn’t assume it’s responsible.
Regardless, I reckon they are … bush lawyer talking here … better wait for a real one
Hope you get em.
October 3, 2013 at 6:25 am #1151824October 3, 2013 at 9:49 am #1151825October 3, 2013 at 11:05 pm #1151826Up::0I think you’ll need to demonstrate (prove) that you were contracting with the company or an agent on its behalf (the employee). From the first invoice and payment the company have arguably established a precedent that (a) the employee had authority to contract for their company with you and (b) that the company was aware of and endorsed the use of your services – at least once.
The challenge will be proving that on the second occasion the same applied. ie that a contract existed between you and the company for the provision of your product / solution.
My guess is that they will fail on the argument that the employee had no capacity to enter a contract with you for your services – mainly because they previously accepted and paid you under that exact arrangement. However there does not seem to be any enduring contract (written or verbal) so each transaction probably has to be assessed on its merits. Hopefully you get a 50% settlement and take away a valuable lesson – informal agreements are very risky business.
Helping build better businesses and better lives with expert financial and taxation advice. info@360partners.com.au www.360partners.com.au 03 9005 4900October 3, 2013 at 11:11 pm #1151827Up::0Unfortunately, I am naive and did not have a signed contract – I provided a formal proposal outlining the ongiong services, and I did receive an email confirming that I had been appointed to provide my services to the company. But I don’t know the strength of an email confirmation in something like this.
Anyway, update is I have passed it on to a debt collection agency that is attached to a legal firm, in the hope that it can be reviewed, a formal letter outlining whatever legal jargon applies and the company will pay up.
I definitely need to take it as a lesson and implement a credit application – anyone got any recommendations on a form or company that provides this?
October 3, 2013 at 11:15 pm #1151828Up::0AgentMail, post: 174351 wrote:Unfortunately, I am naive and did not have a signed contract – I provided a formal proposal outlining the ongiong services, and I did receive an email confirming that I had been appointed to provide my services to the company. But I don’t know the strength of an email confirmation in something like this.Anyway, update is I have passed it on to a debt collection agency that is attached to a legal firm, in the hope that it can be reviewed, a formal letter outlining whatever legal jargon applies and the company will pay up.
I definitely need to take it as a lesson and implement a credit application – anyone got any recommendations on a form or company that provides this?
Maybe speak to your lawyer regarding the most robust process, T&C’s for these arrangements (contracts). It also depends on your risk assessment. If the contracts are large in dollar value then written contracts and credit checks become increasingly important. If the contracts are for smaller amounts and your sales / recovery data indicates very few defaults then maybe just accept the risk and continuing as you have.
Helping build better businesses and better lives with expert financial and taxation advice. info@360partners.com.au www.360partners.com.au 03 9005 4900 -
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