Late payment – holding onto clients kit Legalities?

[FLATBOTTOMFEEDER]

Late payment – holding onto clients kit Legalities?


I have an agent who is one month late in settling an invoice and have now terminated the contract (The initial terms are 1 week). However I have retained some brand new hardware which is owned by the client.

Obviously I would like to send this back to the client ASAP. Could there be any legal repercussions if I were to retain this kit until the outstanding invoice is settled? Or should I send it back to the client and pursue the agency through the normal bad debt procedures?

[ASB]

Could there be any legal repercussions if I were to retain this kit until the outstanding invoice is settled? Or should I send it back to the client and pursue the agency through the normal bad debt procedures?

yes and yes. Shame it's not the agents kit really. you could potentially hold it as a lien against payment. With it being the clients kit you going to be struggling unless you can ascertain that they are responsible for the agents bad debt (i.e. joint and several liability). Approximatley no chance of that happening I imagine.

Of course if you explain your reluctance to return to the client and explain the reasons the might just apply pressure on your debtor.

[FLATBOTTOMFEEDER]

yes and yes. Shame it's not the agents kit really

Indeed it is a shame! Thanks for your opinion it has been very helpful. I will contact the client direct on Monday and arrange for the kit to be returned. Then pursue the agent for settlement.

[TheMonkey]

You can also "not be able to afford to return the kit by courier or personal delivery". That usually gets the ball rolling.