Possibly Big Mistake Looking for Advice

[Fra]

What about sending also this letter to the company where the software has been installed?(a big multinational company)

[Wanderer]

I'd phone the guy up and have a chat. Most likely there is some admin cock up (many companies have an approved "preferred supplier" list and it's difficult to get paid on time unless you are on the list) rather than any malice on the part of the client.

Keep it friendly but firm, make it plain that you had an agreement to do the work and you expect to be paid. Point out that the invoice is over due and you intend to pursue the debt. Tell your contact to find out what's happening and give you an update.

The next step is as oscarose says, get a solicitor to write a "letter before action" to the client, send it recorded delivery to the director of the company. Only do this if diplomacy has failed because it will almost certainly embarrass and upset your contact at the client site.

I'd follow that up with an action in the small claims court for the maximum amount you can claim. It's unlikely that it would come to court and you will probably end up in a negotiated settlement in which case, I would demand payment of the full amount outstanding (including interest and penalties for late payment.

What about sending also this letter to the company where the software has been installed?(a big multinational company)

That's another nuclear option. I would be very wary about doing this.... You could point out to your client that you still own the copyright to the code until they pay you and you will get FAST onto them if they don't pay...

Good luck and don't make that same mistake again!

[BlasterBates]

Are you sure about this? His contract was with the agent so cannot be implied if he is now working for the client directly. There is a verbal contract at very best with no terms. Surely he will have a very hard time convincing anyone the terms are still implied from the old one?

According the contract (if implied) he shouldn't even be there. The agent should step in here and demand his cut.



The keyword is court. That includes the cost of lawyer, lengthy argument of contracts and so on and from what I see here his chances of winning are slim and not cheap.

The agency was not involved in the follow on contract, he went direct with the client. It's a verbal contract not a written one; still binding. He can follow this up himself and follow through in the small claims court, so it needn't be expensive. If the client were to try it on and deny there was a contract it would be a good idea to point out that this would be fraud, I think by prompting the client that you would be prepared to report this to the police would probably get them to settle.

You can agree a contract with who ever you like you don't have to go through the agency. If the agency were to find out he might sue you but that is another matter, you still get paid.