The internet has become an integral part of business in modern day commerce. For most companies, it is convenient to sell parts and components to purchasers worldwide. But the convenience of on-line selling can come with a downside. In the past, vendors could cultivate a relationship with business owners by setting up meetings or sending out salespeople. Today, however, individuals who make purchases over the internet may have little personal connection to the seller. Consequently, purchasers may feel less duty to pay to their vendors on time when payment is not required up front. In such a case, an old-fashioned breach of contract claim may be the only solution for vendors who have not been paid.
A recent business contract dispute provides an example of an internet business being sued for its failure to pay a vendor. Specifically, an online business based in Florida, known as Infinite Labs, LLC purchased nutritional items and ingredients from a vendor, known as Phytogenx Inc. In the lawsuit, Phytogenx alleges that it delivered the products over a period of seven months, but Infinite Labs has failed to pay invoices totaling $369,631.
Infinite Labs may have a legitimate reason for not paying the bill, such as insufficient funds. The claims and defenses will certainly be set forth at trial. While it might seem novel for a dispute to involve an online business, it is likely that these types of cases will become common as companies switch from a traditional model to an internet model. Whenever a company finds itself dealing with this kind of situation it may be a good idea to discuss the details with experienced legal counsel.
Source: The Pennsylvania Record, "Pa. nutrition products manufacturer files breach of contract claim against online Florida business," John Campisi, March 12, 2013