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AngieAnn

Not paying due to poor quality

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I recently opened a retail business.  Before opening, I paid 1/2 deposit for a sign.  The sign was not ready when needed, and when it was finally ready, it was damaged.   Because of the prior delays from this company, and the fact the my business was going to open in a few days, I took the sign and told the sign business that I would not pay the remaining 1/2 until I received a replacement, undamaged sign.  The sign company never replaced the sign.  Do I have the right to not pay the final payment because I didn't get proper quality?

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Did you sign any type of agreement/contract when you put up the deposit?  What does the contract say?

 

You can choose to not make the final payment, but there is a small chance they could sue you in small claims court for the rest of the money, but if they don't want the embarrasment of having it revealed that they made a poor quality sign, they probably will not sue.

 

Hopefully you have arranged to get a sign from a different company.

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Sure.  And the sign company has the right to sue you for the unpaid balance (whether that suit would happen in small claims court or elsewhere obviously depends on how much $$ is at issue, which you didn't mention).  And you have the right to assert the damaged sign as a defense.  How the lawsuit will play out will depend largely on the terms of your contract with the company.

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