Invoicing a different company to that contracted.

Discussion in 'Legal' started by DarrenH1970, Feb 6, 2018.

  1. DarrenH1970

    DarrenH1970 UKBF Newcomer Free Member

    1 0
    Hi,

    We have an ongoing contractual relationship with company A and it is this company that has signed our contracts and this company that we have always invoiced.

    We have now been asked to stop invoicing company A and instead invoice company B which is part of the same group as company A.

    Whilst doing this isn't a huge issue technically I am concerned whether this leaves us in a bit of a muddle legally speaking should things ever go wrong. Should we ever need to take action, say for an unpaid debt are we claiming against A or B, or both?

    I don't really envisage there ever being an issue and so I am not particularly minded to seek 'paid for advice' but I am interested in what people views are on this.

    Thanks

    Darren
     
    Posted: Feb 6, 2018 By: DarrenH1970 Member since: Feb 6, 2018
    #1
  2. obscure

    obscure UKBF Ace Free Member

    2,301 513
    You have no legal agreement with Company B so no legal basis to invoice them or to pursue debts.
     
    Posted: Feb 7, 2018 By: obscure Member since: Jan 18, 2008
    #2
  3. STDFR33

    STDFR33 UKBF Big Shot Free Member

    3,518 855
    What they said ^^^

    If they want the charge to go to company B, company A should raise its own invoice to company B.
    You should not be getting involved in the inter-company charging.
     
    Posted: Feb 7, 2018 By: STDFR33 Member since: Aug 7, 2016
    #3
  4. smallclaimsassistance

    smallclaimsassistance UKBF Enthusiast Full Member - Verified Business

    760 192
    "Whilst doing this isn't a huge issue technically"

    Yes it is.

    Leaving aside the fact that this ignores the fundamental legal principle of privity, (to their benefit and your detriment), them doing so begs the question of why? Have you checked out A's cash position? If not, that's the first thing I would do.

    Once that's done, tell them that you will happily do so if either:

    • Company A provides you with a formal legal indemnity (written and properly executed) which covers their financial liability to you in the event of default by Company B, or;
    • You sign a fresh contract with Company B.
    Do not underestimate how badly this could go wrong. You may have a great relationship with them, but it's not only crooks that get into financial difficulty.

    Dean
     
    Last edited: Feb 7, 2018
    Posted: Feb 7, 2018 By: smallclaimsassistance Member since: Jan 7, 2015
    #4