QUESTION

Contracted by client to perform services which an agreement was signed, contract states payment within 30 days,paid on 32nd day is breach of contract?

Asked on Mar 18th, 2014 on Breach of Contract - California
More details to this question:
Our agreement was that all invoices were to be paid to us within 30 days of receipt. We had to contact them after 30 days had passed and get them to overnight the payment (which we paid for) so we would receive it in a timely manner. Would this be considered breach of contract? All email trails can prove invoice receipt date and what day the payment was sent overnight as we have a Fedex tracking receipt for that. I am asking about breach of contract because after this late payment they wanted refund 40 days later and just deducted the refund from our next payment which we never approved claiming the contract had been Null and Void due to late payment. If we go after the 9,300 they owe us would we do this in small claims or civil court? We are in California and Client is in Texas. thank you
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1 ANSWER

Civil Litigation Attorney serving Arcadia, CA
To answer your first question if payment on the 32nd day would constitute a breach of contract. The answer is yes. The agreement was to make a full payment within 30 days. Any deviation from that constitutes as a breach. However, although the other party technically breached the contract, they ended up making a full payment after 2 days. Thus, minimizing your damages. I believe you indicated that you had to pay for the overnight delivery of their payment. If so, that can go towards your damages. To answer your second question regarding the other party deducting from their payment for the following month, this question is a bit harder to answer. I am confused of whether they are claiming the contract is null and void or if you are. If you are claiming they breached the contract and therefore the contract is now null and void, by accepting any payment, you are implying the contract still stands. However, if the other party is claiming the contract is null and void and they are still sending you a payment, I don’t understand why they would do that. Perhaps more facts will help. But one thing I would like to state is that any modification to any agreement cannot be done by only one side, most of the time. Contracts usually contain a clause that states that if a modification of the current agreement is to be made it can only be made if all parties agree. Further, usually the modification must be in writing. I hope I have helped. I don’t think I was able to answer your question to my fullest ability due to the confusion that arose. If you would like to discuss your situation in more detail, feel free to contact me. 
Answered on Mar 19th, 2014 at 3:15 PM

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