Legal Updates

Compensation for cancellation of a work order requires proof of ‎damage or expenses

April 3, 2016
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A furniture manufacturing company had a customer sign an agreement state that in the event of cancellation a handling fee will be charged in accordance with the company's expenses. The customer canceled the work order and the company demanded compensation.

The Court held that no proof of damage or expense was brought by the company. Because the company is the one who drafted the forms the rule of interpretation against the drafter should be applied. Thus, the claim was denied.