Can company turn my company's account over to a collector?

by Alina

Hello ,

I have a fashion company and we have problems with one of our
past productions. We hired a company in Texas to do the work because they said
the prices are a lot less there , our company is an LA Ca based company.
Shortly after the production was delivered , they sent us an invoice
and the prices are very high . They never sent us a list with the prices before
and we haven't signed or sent a PO confirming that we agree with the prices.
My question is , can they take us to the dept collectors? Their company is in Texas and ours in Ca as well.
We can prove that due to delais we had to pay a high amount for over night shipping and that the quality was bad , 20% from the jeans were rejected by our costumer.
We already paid more than a half .

Looking forward to hear from you

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Jan 18, 2011
Can company turn my company's account over to a collector?
by: Debt Collection Answers

I am not a contracts attorney, but it sounds like you may have entered into a verbal contract with the firm in Texas. Therefore, you may in fact be obligated to pay the company the money it's asking for and if you don't the firm will be entitled to turn your debt over to a collection agency or even sue you. I urge you to seek the advise of an attorney who counsels businesses so the lawyer can assess your situation and advise you about what you ought to do.

In the future, I strongly advise you to put in writing all of the terms of any agreement you may enter into with another company. Working everything out up front and committing everything to paper will help you avoid any unpleasant surprises, make it clear what you and the other company are obligated to do and minimize problems. Having everything in writing will also help you resolve any problems that do arise because there will be no question about what all parties to the contract agreed to.

Best of luck resolving your problem.

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