Breach of Contract

A breach of contract terms?

Q. I am currently working on a short term contract for an small limited company who in turn is a contractor for a larger Spanish-owned company. I have a contract in place for 3 months with the small Ltd and I have received payment from them. However I have now been informed that I should send my invoices to the main Spanish company for payment. Is this a breach of contract terms? The contract is not moving just the payment part. Should I say no to this change? The large company is a slow payer. Can you please give any advice on what I should do?

A. You may first wish to query with the small limited company the reasons why they have requested such a change.

You need to look very closely at the contract. Is there a clause which makes reference to payment being made by the end client direct to you? Are there schedules to the contract which set out the process of payment? Have you been paid in full for your services? It may just be an administrative process. From what you say the contract is between you and the small company and if they fail to pay you then recourse is against the small company.

If you remain unsure of your position, you may wish to obtain quotes in order for the terms of the contract to be reviewed.

This answer was provided by Qdos HR, more information regarding a breach of contract can be found on their website.

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