Contract for contract pay

[Sharon Pollard]

We have a contractor that is holding money owed us for a completed contract against another contract that he says he may be charged liquidated damges for. Is this legal?

 

[David J. Miller]

Most contracts for payment do not include a stipulation that payment will be rendered only if the contractor has means. But, you need to read your contract or better yet have an attorney read your contract and repsond accordingly.

 

[Sharon Pollard]

Thank you Mr. Miller for your response. I will read the contract again. Should I be looking for a paragraph that will state money can be held against another contract? I'm not exactly sure what to look for.

 

[David J. Miller]

That's why you may want to have an attorney review it. I'm sure you'd be able to get a free or at least reasonable consultation.

Since I can't imagine what this contract has to do with the other, I'm certain he is simply saying he does not have the capital to pay you until this other contract pays. That does not mean he has the right to do this. Your consultation will probably result in a demand for payment letter.