It’s Business, And It’s Personal

Business disputes over payments due on account are common

On Behalf of | Jun 11, 2014 | Business Contracts & Disputes |

One common relationship between small businesses nationally, including in North Carolina, is that between wholesale suppliers and retail sellers. It is relatively common in the small business sector for wholesalers and manufacturers to run a credit account for the retailer, based on repayment within 30 to 60 days, with extra charges for interest and late fees. This relatively standard arrangement can sometimes result in various kinds of business disputes.

This may be more common in those situations where the retailer fails to keep his credit payments to the wholesaler (supplier) current. One thing that happens if the retailer stops the flow of money to the supplier is that the supplier will stop making deliveries to the retail establishment. This can cause a real crisis for the retail establishment, and is also damaging to the wholesaler’s cash-flow.

In bad economic times, such fallen relationships may be more prevalent, particularly in industries that are vulnerable to recessionary factors. One business sector that does not generally suffer substantial consequences during a recession is the wedding services business. This industry plans and caters wedding functions, sells wedding attire and serves as consultants to the clients.

In Texas, a wedding store supplier is suing a wedding store on a breach of contract theory. The supplier accuses the retail establishment of ordering various bridal and wedding items, presumably attire for brides and wedding parties, and then failing to pay the balance due. The supplier alleges in the complaint that a balance of $11,591.54 is due on the account. The complaint seeks interest, legal fees and court costs.

The details behind the allegations are not reported. It could be that the retailer has had a rough financial spell and cannot keep up with the payments. Alternatively, the retailer may be disputing the quality or specifications of certain materials delivered. In North Carolina as well as elsewhere, business disputes of this general nature are fairly commonplace. If the dynamics for a settlement fall into place, the parties will be fortunate enough to avoid a hearing or trial on the matter.

Source: The Southeast Texas Record, “Bridal shops in legal dispute over unpaid merchandise“, Ben Hart, June 9, 2014