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Hello, my name is ***** ***** it is my pleasure to assist you with your question today. How much is he owed for the work he already undertook for them, but for which they are refusing to pay?
Hi, thanks for getting back to me. If the agreements in question were governed by separate contracts then each one must be treated separately and the company cannot rely on the fact they were dealing with the same person to try and withhold payments form one agreement by offsetting it against another. If they do so they would likely be acting in breach of contract and he could potentially pursue them for the payments owed.
If he was to pursue them for these payments, they could potentially make a counter-claim for the payments they believe he owes them and in the end it could end up that both contracts would be pooled together and what he is owed may be offset against what he owes them so the outcome could be the same. However, that would only happen once a formal claim has been made and a counter-claim has been issued by the other party. Until then the two contracts would be treated as separate and each party would have separate obligations under each agreement.
So you are correct that they would still need to pay him for the money owed under the contract he had honoured and if they believe that he did not honour another agreement they would have to pursue him separately for that. But if they refuse to pay him and he makes a claim against them, they can still make a counter-claim and try to offset that money from what he is actually owed.
Hope this clarifies your position? If you could please let me know that would be great, thank you
you are most welcome, all the best