Collection letter seeking late payment fees dt enterprises


On January 1, 2016, DT Enterprises, Inc. executed a contract with Samsung, Inc. for the sale and monthly delivery of electronic devices. The express terms of the agreement stated as follows: Buyer shall pay a monthly fee of $20,000.00 for the sale and delivery of goods to the Buyer on the first day of each month during the life of the contract. A late fee of $100 per day shall be assessed upon the Buyer for the non-compliance with the monthly payment in full requirements of the Agreement after the 5th day of each month. Seller shall deliver all good and products to the Buyer no later than the 10th day of each month. Complete delivery is required unless Seller gives notice to the Buyer that compliance is not possible.

On February 1, 2016, Samsung, Inc. contacted DT Enterprises by electronic mail and informed them that full delivery was not possible for the month of February 2016 by the 10th day of the month but that full delivery could be completed by February 21, 2016. DT Enterprises responded in an email that it would agree to the late delivery if Samsung agreed to reduce the charges for the month by 50%. Samsung agreed and DT Enterprises paid $10,000.00 on February 1, 2016. On March 1, 2016, Samsung called DT Enterprises and left a voicemail message informing DT Enterprises that delivery for the month of March 2016 could not be completed until March 12, 2016. DT Enterprises did not return the call.

DT Enterprises paid $20,000.00 on March 13, 2016 after receipt of the products. On March 31, 2016, Samsung contacted DT Enterprises and informed them in a written letter sent by certified mail that there would be no April 2016 deliveries to any clients but that Samsung would be able to fully comply with both the April 2016 and May 2016 delivery on May 9, 2016. Samsung delivered goods for both April 2016 and May 2016 on May 5, 2016. DT Enterprises withheld its April 2016 payment and made its April 2016 and May 2016 payment on May 15, 2016.

On May 21, 2016, Samsung sent a collection letter seeking late payment fees from DT Enterprises, Inc. for the months of March, April and May 2016. What do you think legally?

Request for Solution File

Ask an Expert for Answer!!
Other Management: Collection letter seeking late payment fees dt enterprises
Reference No:- TGS02081413

Expected delivery within 24 Hoursrs

2015 ┬ęTutorsGlobe All rights reserved. TutorsGlobe Rated 4.8/5 based on 34139 reviews.