My question involves business law in the state of: Colorado
Hello All,
I am a contract manufacturer that received some machines and some initial raw material from a business about a year ago with the intent that I would use the machines to convert the raw materials into finished goods. We had an agreement on a price per part based on a quantity of parts that I would produce for the year. After the machines and materials arrived things slowed way down and over the course of the year they only took delivery of about 6% of the quantity of parts they originally ordered. Things are still very slow, they order a few parts a month when they are supposed to be getting 1000 or so, and their machines and material are taking up about 25% of my shop space, so I want to tell then to come and get their material and machines so I can use the space for other income producing things.
Question, Can they legally be charged a reasonable rate for storage of their machines and unused materials since they are using my shop to store it, instead of manufacture it which is what our agreement is based on, but they won't approve the manufacture and delivery of most of the parts that are here. Our agreement doesn't have any wording accounting for this situation.
Thanks,
Oscar
Hello All,
I am a contract manufacturer that received some machines and some initial raw material from a business about a year ago with the intent that I would use the machines to convert the raw materials into finished goods. We had an agreement on a price per part based on a quantity of parts that I would produce for the year. After the machines and materials arrived things slowed way down and over the course of the year they only took delivery of about 6% of the quantity of parts they originally ordered. Things are still very slow, they order a few parts a month when they are supposed to be getting 1000 or so, and their machines and material are taking up about 25% of my shop space, so I want to tell then to come and get their material and machines so I can use the space for other income producing things.
Question, Can they legally be charged a reasonable rate for storage of their machines and unused materials since they are using my shop to store it, instead of manufacture it which is what our agreement is based on, but they won't approve the manufacture and delivery of most of the parts that are here. Our agreement doesn't have any wording accounting for this situation.
Thanks,
Oscar
Business Disputes: Manufacturing Contract That Turend into Storage, Can They Be Charged
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