For businesses who sell large numbers of units to other companies, a sale can involve the transfer of thousands or tens of thousands of dollars. With such large amounts of money changing hands, it is not uncommon for disputes to arise. These can often involve concerns over whether a party provided proper payment for good or services.
A Bloomington demand for payment letters lawyer could help companies collect the payment they deserve after providing a good or service. A knowledgeable business litigation lawyer can work to track the history of the exchange, gather documentary evidence that proves a company’s performance, and author letters that demand payment that carry the backing of law. They are also able to help companies who have received a demand for payment letter investigate the issue and defend those businesses against allegations of non-payment or fraud.
Informal Business Relationships and Legal Liability
The best practice for any company is to create contractual relationships with all their vendors and purchasers. However, smaller businesses who have standing relationships with other companies may rely on less formal agreements to conduct sales.
Less formal agreements can still carry legal force in case of disputes. A contract is an agreement between two parties. While the most common forms of contracts are in writing, the law does recognize the fact that verbal contracts carry legal weight and even something as simple as an invoice can bind parties to the terms.
A Bloomington demand for payment letters lawyer could help determine whether the two companies have a contractual relationship. They could then work to evaluate a company’s legal rights under those relationships to determine if there is a basis to demand payment.
Demand for Payment Letters and Litigation in Bloomington
While a company may have a legal right to take a party to civil court to demand payment, this may not be the most desirable option. Minnesota Statute §541.05 gives companies up to six years following a failure to pay to demand relief in court. However, the parties may avoid litigation altogether if they can settle their disputes during mediation sessions or settlement talks.
A vital first step to this process is the formation of a demand for payment letter. These letters let the non-paying party know that a company is demanding payment on a contract that exists between the businesses. A properly drafted letter should outline the rights of the company under the law, contain information about why they are liable for payment, and invite the company to discuss the matter in greater detail.
Ideally, these letters will convince the other party to pay and, at the very least, bring them to the table to talk about a settlement. It is essential both for parties who received these letters and for businesses that are sending them out to understand the effects that these letters can have. One the one hand, a letter can serve as a first step to let the other party know about a problem and to express a willingness to negotiate. On the other hand, a demand for payment letter can serve as an outlining of legal rights in anticipation of litigation. A Bloomington demand for payment letters lawyer could help guide companies through the process.
A Bloomington Demand for Payment Letters Attorney Could Be an Advocate
Every company that performs a service or provides a product deserves to receive payment for their work. This applies both in situations where companies have formal contractual relationships with other business entities and when the legal relationship is less detailed.
When a party fails to provide payment, the company that is owed money has the right to demand payment in court. However, litigation can be lengthy and expensive. A good first step is to send a demand for payment letter. These can help outline a company’s legal position and begin settlement talks that help keep claims out of court.
A Bloomington demand for payment letters attorney could also help companies that received a demand for payment letter. They can work to evaluate the cause of the letter, determine whether there is a sound basis for the demand, and identify your goals to either work out a payment plan or to dispute the validity of the demand. Contact a lawyer today to schedule an appointment.