Recently we helped a business owner resolve an issue with a customer and recover over $40,000.00 in receivables. We had written the original contract that was in place, and we used strong language that put our client in a position that limited their risk in the event that a client tried to walk away from their obligation to our client.
This particular client of ours has a very specialized business that requires them to put money up front for a customized product that then build for each specific client. The client is a part of the manufacturing and production process and so the contract is written in such a way as to ensure, that if our client follows the proper procedure, that their customer is completely responsible for any failures in the design process.
Our client is only responsible for the actual manufacturing process which is wholly under their control. In this way, our client’s financial and reputational risk can be mitigated.
When their customer withheld payment due to a the finalized product “not meeting their needs”, we were able to demonstrate that all parties had followed the contract, and if their representation of the facts was the truth, then they had actually put themselves in breach of contract. Opposing counsel saw the weak position of their argument and their client paid ours with us having to even draft a complaint.