Crofton, MD asked in Contracts, Business Formation and Business Law for Maryland

Q: What are my rights as a llc when a contract is being broken? I have refused to sign a addendum.

I have a contract with a organization. I was handed addendum to the contract which declined to sign. They threatened to They threatened to suspend contract. Three is 25 hour week retainer fee. The contract can be cancelled by either party by giving 60 day notice in writing which I have not received. Two questions is it legal for a contract to be suspended? During the 60 days must all contract terms be fulfilled?

1 Lawyer Answer
Mark Oakley
Mark Oakley
Answered
  • Rockville, MD
  • Licensed in Maryland

A: You need to take your contract to a lawyer to review what it actually says, and evaluate whether it has been breached or not, and what your remedies are in the event it is breached. Your post does not really say anything other than they are trying to change the terms of the agreement you both signed, and you will not agree to do that. Well, you are under no obligation to renegotiate your contract. If they decide to suspend or terminate the contract, then you look to the terms of the contract for your remedy, or if there is no clear remedy spelled out, you can sue for breach of contract and seek whatever contractual monetary damages you can prove you suffered on account of the breach. A threat to terminate or suspend a contract is not an actual suspension or termination of a contract--it is a threat. You will need to wait until they carry through with their threat. Since this contract represents an ongoing working relationship and income to you, you need to decide whether loss of this income is something you are willing to accept as a cost of this disagreement, and whether you are able to move on to other income-producing activities without them. I am not saying give in to their unreasonable demands, or to do something extra for no extra compensation, but you will need to weigh your response in practical terms as to how you will be able to continue based on your reaction, and their reaction to what you do. You may have civil remedies in a suit, but you will incur legal fees and lawsuits take time, and you will forever ruin your relationship and future with this company. If you are fine with that, then stand your ground and let them cancel the contract if that is what they intend to do. Then you can decide whether to sue them for brech or not.

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