Is there a guideline for a written letter of refuse-to-pay?
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Is there a guideline for a written letter of refuse-to-pay?
We received an invoice for $750 for services that we did not feel were worth the cost. There was no clear start of the “consulting” cost and we are refusing to submit payment. I have been searching around the web and can’t seem to find a proper template for a small business letter.
Asked on January 28, 2015 under Business Law, Wisconsin
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 9 years ago | Contributor
There is no template because situations vary so much. There is also not necessarily any right to refuse to pay because you feel the service was not worth the cost--people often are disappointed by what they buy, but have to pay anyway. The only real issues are:
1) Did they lie about the service, the rate, or some other signficant issue? If so, they may have committed fraud, which would provide grounds to not pay.
2) Did they violate the terms of a service agreement, proposal, price quote, etc, in which case they may have breached a contract, which could provide grounds to only pay what was in the contract.
3) Did they get the time that they provided services wrong (e.g. bill you for too much time), in which case, if you can prove the correct time, you'd have grounds to only pay for the accurate time.
Otherwise, in terms of a letter, simply clearly spell out your objection, and send the letter some way you can prove delivery (e.g. certified mail). Bear in mind that to avoid a possible legal fight, it's probably better to negotiate to pay something you can live with rather than refusing to pay anything at all.
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