Quote:
Originally posted by archer
this is an interesting - BAD - legal situation.
doesn't it come down to how the contract between the parties is written?
in some fields like construction, for example, standard contracts contain a 'pay when paid' clause. ie you don't get paid for your work until the guy ahead of you in the chain gets paid. but i don't think i've even seen a contract like that outside of construction.
what is the case here?
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I don't know actually. ;) The contracts could be written differently in which case the sponsor may be free and clear legally.
I wouldn't care anyways. If I sign up with a sponsor promising me 50% of sales, I don't care if the processor they are using is having checks withheld from them by their banks because one of their bigger clients screwed things up for them. Get a processor that doesn't live week to week.
If the processor doesn't pay, the sponsor should pay out of their own pocket.