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payoff when a company terminates a contract with consultant

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muxeu

Junior Member
What is the name of your state (only U.S. law)? CA

I was doing a programming job (remote from outside of US) for a US company (in CA) as a consultant by a contract. After a few months at day X they sent me an email with termination notice (i.e. fired me at day X), closed all my accounts and accesses at day X also and after that they paid me salary up to day X inclusive.
They didn't tell me about termination before day X.

The termination condition in the contract says the following:

Term and Termination.

Consultant shall serve as a consultant to the Company for a period commencing on the date hereof and terminating on the earlier of (a) the date Consultant completes the provision of the Services to the Company under this Agreement, or (b) the date Consultant shall have been paid the maximum amount of consulting fees as provided in Exhibit B hereto.

Notwithstanding the above, either party may terminate this Agreement at any time upon three (3) business days’ written notice. In the event of such termination, Consultant shall be paid for any portion of the Services that have been performed prior to the termination.

So the question - must they paid me for 3 days more?

Yes I didn't make any services for them after day X, but as I understand they should have written the termination notice 3 days beforehand and pay for these 3 days too regardless how much services I did during this 3 days.
 
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justalayman

Senior Member
It appears, based only on what you have presented, you are due 3 days pay.

So, how much are you willing to spend to fly to California and spend the time to prosecute your claim for 3 days pay, of course understanding the costs of prosecuting your claim are not compensable unless such costs are allowed for in your contract?
 

muxeu

Junior Member
So, how much are you willing to spend to fly to California and spend the time to prosecute your claim for 3 days pay, of course understanding the costs of prosecuting your claim are not compensable unless such costs are allowed for in your contract?

no, I'm considering using a collector agency for claiming that. It's about 1000$ sum, so if agency takes 20-30% it's OK for me, I'll get 700-800$, better than nothing and I'm doing nothing myself.
 

Proserpina

Senior Member
no, I'm considering using a collector agency for claiming that. It's about 1000$ sum, so if agency takes 20-30% it's OK for me, I'll get 700-800$, better than nothing and I'm doing nothing myself.

The collecting agency needs something giving them the authority to collect in the first place ...
 

Zigner

Senior Member, Non-Attorney
Why do yo feel you are due over $330 per day when you don't do any work on those days?
 

I'mTheFather

Senior Member
I don't believe a judgment is necessary to hire a collection agency; however, without one, the company won't have much motivation to pay the agency.
 

tranquility

Senior Member
Nope. You need a judgment/court order or similar in order for them to collect.

I disagree. Some of my clients give accounts receivable to an agency to collect. Depending on the amount and the quality, they either pay a commission or a fee up front and a commission.

Of course, if the OP were to sell the right to collect, the person who pays can try to collect but will "stand in the shoes" of the person who sold the right.
 

Proserpina

Senior Member
I disagree. Some of my clients give accounts receivable to an agency to collect. Depending on the amount and the quality, they either pay a commission or a fee up front and a commission.

Of course, if the OP were to sell the right to collect, the person who pays can try to collect but will "stand in the shoes" of the person who sold the right.

Fairynuff. I was incomplet .. I skimmed. And was multitasking sans caffeine. Shan't do that again today.
 

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