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?

UPDATED: Oct 1, 2022

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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


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 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.

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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