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  1. #1
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    Dec 2010
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    Default How Can I Prove Assignment of a Contract

    My question involves business law in the state of: New York

    I'll try to make this fairly concise and to-the-point. I own a business in NY, and have pay another company to take over some of my clients. They perform the work, and clients are aware that they are a different company than mine. Recently, this second company failed to perform work that was supposed to have been done. The clients are actually satisfied with me, but angry at the other company. I was led to believe that assignment of a contract in New York does not have to be done in writing. Is there a way to prove that by paying the other company and them performing all the work that this was an assignment? And if so, do the customers have an option to sue the other company instead of me?

  2. #2
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    Default Re: How Can I Prove Assignment of a Contract

    explain what you are referring to with the assignment of the contract. Are you subcontracting this other company to do some work but the contract with the customer is still with you?
    What kind of work are we talking about?

  3. #3
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    Default Re: How Can I Prove Assignment of a Contract

    Quote Quoting jk
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    explain what you are referring to with the assignment of the contract. Are you subcontracting this other company to do some work but the contract with the customer is still with you?
    What kind of work are we talking about?
    Yes, i am subcontracting the other company to do some of the work, while the contract is with me. The client in question is aware that the subcontractor was doing work for them. I do debt negotiation work. The other company has negotiators who do some of the work on my behalf.

  4. #4
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    Default Re: How Can I Prove Assignment of a Contract

    If the contract remains with you, you are the contracted party and as such, bear liability. There is no assignment of contract if you are merely subcontracting the work. In a true assignment, you relinquish all rights and duties of the contract. That does not appear to be the situation here.

    You may have an action against your subcontractor for some failure to perform as your contract with them requires but the customers action is against you.

  5. #5
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    Default Re: How Can I Prove Assignment of a Contract

    A quick folow-up question then: my customers are interested in pursuing a lawsuit against my subcontractor for negligence. THey were aware that the subcontractor is a separate entity, and paid them directly at one point. They actually do not wqant to involve me in the dispute if they can avoid it. Would they have a cause of action against my subcontractor directly? I have no indemnification agreement with the subcontractor.

  6. #6
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    Default Re: How Can I Prove Assignment of a Contract

    the problem is: what contract do they have with your subcontractor?

    From what you have stated, they actually do not have a contract with your client. As such, the subs responsibility is to you and their actions are dictated by your contract with them. Your client is to receive whatever services you contracted to provide them. The failure to provide that service is on you.

    The fact they paid the sub directly tends to show there was some contract formed but without knowing all of the facts of the matter, it is impossible to determine if there actually was a contract formed or not.

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