collecting full balance on a contract

by Amy Mac
(Coarsegold, CA)

I had a contract with a food delivery service in Las Vegas I was a month behind on paying them when I moved to California when I notified them I was moving he said I would have to pay for the 2year contract I said if you cant provide me with the service im not pauing for the rest of it I sent in my last payment but before it was processed they sent me to collections for the full amount of the contract are they obligated to provide me a service they are making me pay for there is no clause in the contract about moving out of their service area

Comments for collecting full balance on a contract

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Dec 01, 2011
collecting full balance on a contract

A contract is a legally-binding document. In other words, both parties agree to its terms and if one of them fails to live up to all of the terms, then they have broken the contract and the other party is entitled to take action to enforce the contract terms. That is why it's very important to understand everything you are agreeing to before signing a contract. Therefore, unless your contract with the food delivery service states that if you move to a different community or state during the term of the contract, it must provide you with food, it's not obligated to do so; and unless the contract says that if you move to a different community or state, the contract is voided, then you are obligated to continue paying on it.

Some contracts include an early termination clause which allows someone to cancel the contract, usually by notifying the other party to the contract and paying some money. You did not mention such a clause in your question so I assume your contract does not include one. If it does however, you should have exercised it once you knew you were moving to CA, and you may still be able to depending on how the clause is worded, although now that your debt is in collections, exercising it may be impossible.

If you ignore the debt that the collector wants you to pay, you could find yourself sued for the money you owe eventually, depending on how badly the food service company wants to collect from you. If that were to happen, the fact that you were sued would badly damage your credit history and FICO score, which have already been damaged by the fact that a debt you owe has been sent to collections. So, I would try to resolve the collection account as quickly as possible.

If you cannot pay the full amount that you owe, the collector may allow you to set up a payment plan to pay the debt over time or you may be able to settle the debt for less than the full amount. If you settle, you will probably have to pay the settlement amount immediately in a lump sum. If you are able to negotiate a payment plan or a settlement, don't pay any money on it until you have the terms of your agreement spelled out in writing.

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