Is it legal if my LLC just canceled an agreement when customer who won’t pay on the first of the month as previous agreed?

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Is it legal if my LLC just canceled an agreement when customer who won’t pay on the first of the month as previous agreed?

We have been working for a client for the last 10 months and being paid on the 1st of each month. This month when we called looking for payment he said since this is your last month of our agreement I will pay you at the end of the month. We informed him no payment no service. So we are looking to make sure we haven’t put ourselves in fault?

Asked on November 7, 2018 under Business Law, Pennsylvania

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 5 years ago | Contributor

Based on what you write, you would be legally entitled to cancel the agreement. Under the law, when one party (e.g. them) violates or breaches a material (or important ) term of an agreement (like when payment is to be made), the other party may treat the agreement as terminated by the breach.


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