Can liquidators claim for POs that were never invoiced?

[ajessup]

Hi there,

This may be a very obvious question but I cannot find a clear answer to it.

My supplier (of a service) has gone into liquidation. We had issued a PO against an estimate of theirs and they worked on a digital project with us. There are no physical items that changed hands. The supplier went into liquidation before the project was finished and so, we were never invoiced and have not received the finished project/service.

Just looking for clear answer if we can be pursued by the liquidators, as we’re not actually a debtor?

Thanks

 

[Frank Wessely]

Hi @propu

It is possible that the liquidators might try to collect a part payment for the work that was carried out, but if that happens I assume that you will deny liability as you did not receive the completed product. If the liquidators sold the supplier contract as a company asset then the purchaser would be in contact with you to agree a basis to complete the work.

Thanks.

 

[ajessup]

Hi Franks

Hi @propu

It is possible that the liquidators might try to collect a part payment for the work that was carried out, but if that happens I assume that you will deny liability as you did not receive the completed product. If the liquidators sold the supplier contract as a company asset then the purchaser would be in contact with you to agree a basis to complete the work.

Thanks.

Hi Frank,

Yes, we’ve not received the completed work so that’s what I thought.

As far as I know, the supplier company is being dissolved and no contracts will be sold on. I don’t see how that would be possible with the work we do, all the supplier employees have been dismissed and left. So with that all the knowledge of the project. Our contract with them was also tendered, so it wouldn’t be possible to just get some other random supplier the liquidators sold it to, would it?

 

[ajessup]

Hi @propu

It is possible that the liquidators might try to collect a part payment for the work that was carried out, but if that happens I assume that you will deny liability as you did not receive the completed product. If the liquidators sold the supplier contract as a company asset then the purchaser would be in contact with you to agree a basis to complete the work.

Thanks.

Sorry, just had another thought.

How would the liquidators know how much or if any of the work had even started on the project? That’s assuming liquidators only have access to bookkeeping/financial systems and not project management systems?

The project was only approx. 25% or less the way through, so would the liquidators pick an arbitrary percentage to ask for part payment? Like 50%? Obviously nothing was received so this is likely irrelevant but just want to feel I understand it. Thanks again!

 

[Lisa Thomas]

Directors have a duty to disclose all assets and potential assets to the liquidators, including any work in progress. They also have to deliver up all of the company's records to the liquidators.

 

[IanSuth]

If i would you i would ensure that there are detailed records put somewhere of exactly what was requested, what the payment terms/stage payments that were set out were etc etc.

If you are approached you can then show exactly what you do or don't owe - if there are clauses that cover guarantees and warranties for the completed work you want those as well as they represent a liability that goes along with any payment and might change the thoughts on whether worth pursuing

As in "the work had reached the first stage payment point so you owe us £50k" - "In which case please note the clause regarding fitness for purpose and consequential damages if the product does not do what it needs to and the projected completion date - if we pay you £50k I assume you will honour those ?"