Consumer Law, Warranties My rep. asked me to buy out the contract or he will sue me!!!

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Withlove29

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Los Angeles County, CA, USA

Thanks for spending your time on my thread. I really appreciate your advice.

In 2003, I signed a contract with a sales company to sell my products to 5 retailers exclusively. My mom is the owner of the company and I am one of the officers. In 2006, I opened my own company and began doing business with them under the new company but I did not sign a new contract for the new company. Starting 2008, I have been hearing my customers telling me that this sales company is promoting my competitor's products. (Of course, the sales company denies it). Around the end of June,2008, one of the customers called and said one of the reps in this sales company claimed that he doesn't work with us anymore. Around the same time, the payment was delayed for 2 weeks; thus, we sent them an email asking for the payment and notifying them that orders would be on hold. On July 19th, the owner of the sales company sent us an email accusing us for not shipping out the goods since 7/7/08 and using this to sue us for breaching the contract. I looked over the contract and it doesn't state if we refuse to ship is breaching the contract.

My quesions are:
1. Is this breach of a contract?
2. We have been using the new company to do business with them since Oct.2006. Can he still sue us according to this contract with the old company? Because my mom is not the owner of this new company. But I was the one who signed the previous contract under the old company name. The new company is now under my name.
3. Does a contract ever expire?
4. Since his rep (whose name is also listed on the contract) told the 5 retailers that the sales company doesn't work with us anymore, can I use this as a point to proof that they are the ones who decided not to represent our company anymore and they are the ones who breach the contract?
5. He keeps asking me to buy out his contract and says the contract won't end until Jan. 2010. He said "Since I have sold more than the annual sales amount on the contract, the excessive amount should roll over to 2010." The contract does not state anything about sales roll over. Can he do that?
6. Can I do business directly with the 5 retailers? Since the new company name is not on the contract?

I try my best to explain the situation as clear as possible. I really thank you for your advice. If there is anything unclear, please let me know. I have attached a copy of the contract. The names have been revised to for privacy.

Thank you!!!
 
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