My question involves business law in the state of: Tennessee
My trucking company was factoring our A/R with a TN corporation. When we wanted to stop factoring with their company, we had to sign an agreement in which if one of our customers sent our funds to the factoring company, they (the factoring company) could deduct 10% as a processing fee and send the remaining funds to us. The company we made the agreement with has been dissolved per the TN Division of Corporations page.
Can the company that took over the building and purchased their A/R portion enforced the agreement? It has been over 2 years since we signed the agreement. The agreement does not have a termination clause or transferable clause. It states it is an agreement between us and them (the old factoring company) and doesn't include terminology as to a successor. There is a hold harmless clause that includes successors. And a clause for Defame & Disparage. I tried sending the check back stating the funds need to be returned to our customer. However, they returned the check less the fees. I've tried to get my customer to insist that they issued payment to the wrong company and the factoring company needs to return fees to them. But, that hasn't worked. I know I can legally argue with my customer that they owe me the difference because they received the release letter from old factoring company. However, I'd rather just end this agreement and stop the new company from deducting fees.
Advice needed.
My trucking company was factoring our A/R with a TN corporation. When we wanted to stop factoring with their company, we had to sign an agreement in which if one of our customers sent our funds to the factoring company, they (the factoring company) could deduct 10% as a processing fee and send the remaining funds to us. The company we made the agreement with has been dissolved per the TN Division of Corporations page.
Can the company that took over the building and purchased their A/R portion enforced the agreement? It has been over 2 years since we signed the agreement. The agreement does not have a termination clause or transferable clause. It states it is an agreement between us and them (the old factoring company) and doesn't include terminology as to a successor. There is a hold harmless clause that includes successors. And a clause for Defame & Disparage. I tried sending the check back stating the funds need to be returned to our customer. However, they returned the check less the fees. I've tried to get my customer to insist that they issued payment to the wrong company and the factoring company needs to return fees to them. But, that hasn't worked. I know I can legally argue with my customer that they owe me the difference because they received the release letter from old factoring company. However, I'd rather just end this agreement and stop the new company from deducting fees.
Advice needed.
Contract Law: Contract with No Termination Clause
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