Is an independent contractor entitled to repayment of previously paid rent following termination due to breach of contract?

UPDATED: Jul 18, 2012

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Is an independent contractor entitled to repayment of previously paid rent following termination due to breach of contract?

An independent contractor in my business was let go from her position following a breech of contract last week. Then 4 months ago, she chose to conduct a living social deal and paid a certain percentage of what she collected as per our rental agreement. About 2 weeks ago, prior to her being asked to leave, she made the decision to cancel the deal therefor having to refund payments back to living social. She is now threatening to sue me as she expects repayment for the percentage she paid for rent. I am uncertain as to what my rights are.

Asked on July 18, 2012 under Business Law, Iowa


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

An independent contractor under the laws of all states in this county is not an employee of the entity that the independent contract is with for services. As such, the terms of the independent contract controls the relationship of the parties where the independent contractor can be let go under the terms of the agreement.

Since that has happened, the company that ended the agreement with the independent contractor should not have any liability for any other agreements that the independent contactor had such as the "living social" that you have written about. Such would be solely the independent contractor's obligation.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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