Can a company change an invoice after being paid?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Can a company change an invoice after being paid?
The company quoted me a price on an invoice, I agreed to the pricing. They had a typo on the billing amount that I did not know about nor that they knew about. The invoice was paid and services rendered. Six month later they are coming to me saying they made a mistake, the employee that they fired did not bill me correctly, now they want more money. Is this legal? The new amount is almost double the original amount. They are telling me that the employee did not correct his mistake before billing me.
Asked on August 28, 2013 under Business Law, Tennessee
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 11 years ago | Contributor
The issue is whether the "error" was actually a typo (so to speak) or represents a change in what you agreed to pay. If, for example, there was some proposal, estimate, pricing schedule, etc. from which you would have known the cost, and the cost you were billed was less than that due to some typographic or similar mistake, the company can recover the balance from you--a mistake does not bind someone to accept other than the agreed-upon amount. This situation only applies if what you were billed was out of line with the agreement.
On the other hand, if they billed you what you had agreed to pay (e.g. what had been in any quotes or proposals) but then belatedly realized they should have charged you more, that is their problem, not yours, and you are not liable for the additional amount. A company may not alter the agreement between you.
So again, the issue is: what amount did you agree to pay? That is what you may be charged.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.