Flaky Client
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- Beeswax
My client decided to terminate the contract with an email yesterday. Until then there wasn't any problems, it seemed like everything was going well but he suddenly changed with an email. The project was his personal start-up idea so I assume he decided to give up for some reason.
I have this term in the contract,
8.3 In the event of termination, Designer shall be compensated for the Services performed through the date of termination in the amount of (a) any advance payment, (b) a prorated portion of the fees due, or (c) hourly fees for work performed by Designer or Designer’s agents as of the date of termination, whichever is greater; and Client shall pay all Expenses, fees, out of pockets together with any Additional Costs incurred through and up to, the date of cancellation.He still has to pay the completed portion of the work which is about $2200.
And he still didn't responded me about that.
I want to know just in case, what should I do, where should I go, if he fails to uphold this term of the contract.
There's one problem though, the client is in the US but I live in another country and I'm not a US citizen.
- detritus0
Then if he doesn't pay, I suspect you're in a bit of a jam.
- d_rek0
Last I checked signed contracts were legally binding in most of the civilized world.
But really... you may want to consult a legal expert. If the contract is signed and legit.. it shouldn't be that difficult(relatively speaking) to collect the money.
- melq0
Even if you were in the U.S., him choosing to not pay would be difficult for you.
Proactively, you should try to make it easy for him to pay. Perhaps you could initiate a conversation regarding why the work has been halted. If everything is as you expect, let him know that you can empathize with his situation and would be willing to work out a series of payments in order to pay for the work provided. This way, if fails to make all of the payments, at least you've gotten some of the money.
- fyoucher10
Do you have anything regarding who pays for any loot associated with collecting past due payments? (And arbitrator, collection agency, lawyer, etc) If not, good luck. $2200 is not a lot. Your lawyer fees will probably cost more than that. Trying to take it to something else will probably cost you money to take a flight to get here. But your client probably knows that.
I'd say just keep bugging POLITELY and make it a point that you've already spent time on his project and am looking to get paid for the work created to date. Being a dick to him is going to get you nowhere fast.
If he doesn't pay, you're kind of shit out of luck....to be honest. This is one of those reasons why it's always best to get something up front.
- doesnotexist0
send him an invoice
- honest0
If you have a solicitor in this country, they should be able to help you with debt reconciliation. My solicitor has ties with firms in the States, get your's to start earning their keep.
- randommail0
fyoucher1 is right.
It's not enough money to take legal action, and your client knows it.
Since you do have a signed contract, any CPA would tell you, continue to email a monthly invoice to the client until tax season. You should be able to write it off as bad debt.
Obviously not as good as actually getting paid the full amount, but at least it's something.
- boobs0
Even if you have a contract, if the contract is with the company, and the company has gone under, you're most certainly fucked.
Don't mean to lecture, but this is one of the most important reasons to get deposits, and to get paid at regular intervals. Because companies, especially start-ups, do go under. And the liability is with the corporation, which no longer exists, and not with the person.
To a certain extent, in deciding when to do a job (I know not everyone really has a choice, have to take what you can get, etc...), you have to look at the health/reputation of the company.
If the person is really just starting out, you might actually want some sort of collateral to hold until they pay. Like the guy's favorite guitar, or something. Just a thought.
- dMullins0
Your best bet is to SNAIL MAIL this guy a copy of the contract with the appropriate, relevant sub-section highlighted. In addition, include an invoice, with the amount due highlighted. Send via the USPS and REQUIRE a signature confirmation for delivery. Also include a personal note that re-outlines the terms of the agreement, as well as an extended window of payment, up to 60-days out. After 60 days, if still unpaid, only then should you try to go after him legally. You have shown due diligence for attempting to collect what is owed to you.
Should the package be returned, do not open the letter, and then contact a lawyer.
fyoucher is right though—$2200 is not a lot of money in the grand scheme of things. If you don't have declarations in your contract that state the client is accountable for any legal fees, your best bet is probably just to threaten legal action, and not actually follow up with it. You will easily drop $5k chasing this guy down over $2200.
Should you decide to go after the guy yourself in small claims court, make sure you find out what to go after: this guy personally, or the LLC/business that is associated with this project. I have a friend who tried to sue a guy once over like $10k on a project, tried to sue the guy, and got the case thrown out of court, because the business was tied to an LLC, not the actual person. My friend never got his $10k, and also lost a bunch of money due to the case being thrown out.
Bit of a ramble, but just my advice.
- boobs0
I'm not advocating violence, mind you, but you may find this video instructional: