I asked a truck body builder to manufacture a prototype for me, this is the second prototype they have built for me.

Expert's Assistant chat
Customer: I asked a truck body builder to manufacture a prototype for me, this is the second prototype they have built for me.
They signed an NDA (February 2020)with my Incorporated Co. prior to building the first one, this is the only written agreement that we have engaged in.
When I asked them to build a second prototype (late August 2020) I told them at the time I didn't and wouldn't have the money to pay for it, I did say that I would have it sold within weeks of it being finished. They told me that they wouldn't because they didn't need unsold truck equipment in their yard, I was told this yet they took my down payment for materials.They informed me October 1 that they were in progress of building it and asked me to come have a look at it. The building was approximately 1/3 into the build process, I gave them direction in the build providing propriety knowledge for aspects of utilization that were new to the industry ( intellectual property).
January 6 2021 they decided it was done and gave me a bill for the manufacture of it that doesn't list a separation of costs, no mention of my deposit, but that I am liable for interest of 24% per annum.My questions are;
Am I liable for the interest since it is in their possession? I told them before they built it I didn't have the money to pay for it, the invoice is for 29,400.00 as of January 6/21, my deposit was 2,000.00.
In my observation of it they voluntarily went ahead with the build knowing full well that I didn't have the money to pay for it. They made an investment to build it, don't want to put anymore money into it but it isn't in a finished sellable state.
Do they have the right to sell it off to recoup their investment considering that it utilized my propriety knowledge knowledge?
To familiarize yourself with the situation it can be viewed on Facebook by searching
AttakCap on Facebook.
Mind the spelling.Thank you ***** (###) ###-####
Answered by Lawyer101 in 2 days 1 year ago
imglogo
Lawyer101
10+ years of experience
logo

44 Satisfied customers

Expert in: Family Law, Legal, Estate Law, Real Estate Law, Criminal Law, Employment Law, Business Law, Consumer Protection Law, Bankruptcy Law, Traffic Law, Personal Injury Law.

logoBack
logologo
Lawyer101
logo
logo
44 Satisfied customers
logo
10+ years of experience
imglogo
Lawyer101
10+ years of experience
logo

44 Satisfied customers

Jessica

Jessica

Consultant

31,131 Satisfied customers

Pearl avatar
Lawyer's, Assistant
116 Lawyers are online right now.
img

Lawyer101, Expert

Did you have a written contract regarding payment terms?

Customer
No
img

Lawyer101, Expert

Did you draft the NDA? Specifically, what did the NDA say regarding third-party disclosure?

Customer
I'm not paying for a phone call
Customer
File attached (ZG5L374)
img

Lawyer101, Expert

I think you're going to encounter problems with enforcing this NDA because you didn't specify the definition of "Confidential Information".

Was this signed?

Customer
Hi
Customer
File attached (15QT4PM)
img

Lawyer101, Expert

Overall, you have two different issues in your question. The first is whether or not you can enforce the NDA and seek damages for their potential sale of the prototype to a third party. The second is whether they can enforce interest and force you to pay.

Regarding the NDA, I don't think you have a strong claim to seek damages if the prototype is sold to a third party. You define confidential information as "a new design of truck canopy". You don't specify that 1) the design is yours and 2) that it extends to any prototype they build for you.

Regarding the payment terms, they are going to have a hard time seeking this from you because there is no signed contract regarding payment or interest terms. They may try to seek it from you by taking the matter to small claims or reporting it as unpaid debt to credit agencies and collections. Unless there are text messages or emails to the contrary, they will have a difficult time enforcing their claim through small claims. For credit bureau reporting, if it is reported you can work directly with the credit bureau or collections agency to contest the claim that you owe them money.

Customer
Thank you very much, I appreciate your reply.
The NDA was written up by Lambert Intellectual Property Law in Edmonton Alberta
Ask a lawyer and get your legal questions answered.
See all Legal Questions
img
How it works
logoAsk for help, 24/7
Ask for help, 24/7
Members enjoy round-the-clock access to 12,000+ verified Experts, including doctors, lawyers, tech support, mechanics, vets, home repair pros, more.
logoExpert will respond in minutes
Expert will respond in minutes
After you reach out, we match you with an Expert who specializes in your situation. Talk, text, chat, whichever you prefer.
logoSave time & money
Save time & money
No scheduling hassles, missing time from work, or expensive consults.
A JustAnswer membership can save you significant time and money each month.
img
logo 593 Verified lawyers, 10+ years of experience
DISCLAIMER: Answers from Experts on Askalawyeroncall.com are not substitutes for the advice of an attorney. Askalawyeroncall.com is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response as proposing specific action or addressing your specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances should be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on any information received from an Expert, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains. The responses above are from independent, freelance Experts, who are not employed by Askalawyeroncall.com . The site and services are provided “as is”. To view the verified credentials of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service.
Explore law categories
Powered by JustAnswer