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Jo C.
Jo C., Barrister
Category: Law
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Experience:  Over 5 years in practice
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We are a company, and have a dispute with a supplier over one

Customer Question

We are a company, and have a dispute with a supplier over one purchase order, and are withholding some payment until we can resolve the issue with them. An occasional occurrence, but nothing unusual after 43-years of being in business.
We have a separate purchase order with that same supplier, and he is withholding the goods. He knows that we need those goods within 3 weeks or it will cause us major problems on a project, so he is holding us to ransom, wanting us to pay his full account before they release the goods. (Normally we pay within 28 days after receipt, so have not yet paid for these goods.)
To clarify the background, our supplier buys components from various sub-suppliers, and those components are assembled by one of the sub-suppliers. The goods are currently waiting for delivery at that sub-supplier. We have pictures of those complete goods, and hence our client has paid us for those goods “off site”.
Ballpark value of the goods is £15K, but it could jeopardise an on-going project worth £100K to us. We have been paid for £24K of works from our client, and we have another £30K of goods in our stock for the project.
So where do we stand legally, such as:
a) If our client tries to claim from us because we cannot finish their project, and we also have a lot of unused goods in stock.
b) And is there any way that we can legally get our hands on the goods held at our suppliers sub-supplier?
Thanks,
Paul McFerran
Submitted: 9 months ago.
Category: Law
Expert:  Jo C. replied 9 months ago.
Hello does the contract you have allow any of this?
Customer: replied 9 months ago.
Can you clarify please. There is no lengthy contract, just 1-page purchase orders for goods.
Customer: replied 9 months ago.
Anyone there ?
Expert:  Jo C. replied 9 months ago.
Ok.Does it say anything about withhold goods?

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