Company is refusing to pay threatening legal action

[SueEllen]

I will be using all of these tips and advice just to mention of the guy who said dont let it happen again (re the no contract) its really hard if they make the right noises you cant turn round and down tools until its done, well perhaps you can but you might find yourself out the door - on second thoughts I would have been better off so perhaps but you guys know what I mean. This company knew what game they are playing and at times maybe it works for them. We shall see.

But once again thanks.

Firstly you have a contract for services. You have no obligation to accept work and they have no obligation to provide it.

Secondly in your contract there should be a breach of contract clause that gives them between 7 and 14 days to rectify any breaches brought to their attention.* Not paying you on time is a breach of contract.

Combining the two means you can refuse to provide services unless they pay you within the time stated in the contract.

In addition if the clause about rectifying breaches of contract is properly written it should mean you should be able to terminate the contract after that time period. After which you can take next step in chasing them to pay your overdue invoice i.e. sending them a letter threatening recovery action.

I have refused to provide services due to an overdue invoice this year. I just told the client once you pay the invoice I will be happy to start again. The invoice got paid as the matter went to the head honcho in the company who didn't know what their financial department were doing.

* Always do this in writing after telling them verbally preferably by recorded snail mail unless all your other communications have been done with them via email.