client refusing to pay...project 90% finished

[d000hg]

Sounds pretty cut and dried to me. Unless they can show you demonstrably didn't do what was paid for they are just trying their luck... or one of their guys said you hadn't done the work right and 'had to re-do it'.

Make sure they know you are not going to roll over and then just go through the steps advised. How many hours you worked isn't the issue except to show you went above the call to get things done in good faith, maybe.

Good luck!

[Safe Collections]

A contract requires four essential parts to be binding; offer, acceptance, consideration and an intention to create legal relations.

I can't comment on your situation as I'm unaware of the full details, but as an example it would work like this:

<Negotiation>
A: What's your day rate?
B: £400 a day?

<Offer>
A: I want you to work for 8 days at £400 a day

<Acceptance>
B: Okay I'll come in on Monday and start

<Consideration>
A gets 8 days of B's time
B gets £3200

<Intention to create Legal relations>
As this is business to business, there is a presumption that there was an intention to create a legal agreement and it would be for A or B (as the defendant) to argue there wasn't. The fact that B turns up on day 1 to work and A lets them work on the system would be near impossible to argue against.

A contract does not require a prescribed form unless it's a specific type of contract, mostly to do with land purchases etc. So you do not need a written contract. All you need to do is to be able to prove the four items above. E-mail evidence is acceptable.

It is important to note here, your best option in a situation like this is typically not for breach of contract, but is an action for an agreed sum. It is typically easier to argue that you have performed a contract and are due money than arguing that the other side have caused you damage by not performing their side of the bargain.

If you want to do this yourself then you would write a Letter Before Action, google it you'll find plenty of templates. state how much you require, what it is payment for, how long they have to pay and a method of payment (cheque, bank transfer, both, etc). That is all and it should be no longer than ten lines. Do not waffle, chances are they'll ignore it anyway. When the period of time is up, you fill in an N1 form (if small claims which I'm assuming) and pop it off to Northampton. Alternatively you can get a solicitor to draft it for you. If under £5k it's small claims and you can't recover legal fees. You can claim for interest from the date that payment was due, currently it's set at 8% and the debt will continue to accrue interest until the date it is paid.

Any questions give me a shout.

Great advice from incognito as always, specifically relating to the offer, acceptance, consideration and an intention to create legal relations.

From here it would appear that the above have likely been met in the email correspondence between your company and the naughty client.

However this:

If they reply, and say "what are you talking about" that's fraud, you call the police and they get several months in the slammer.

Whilst probably posted in a spirit of helpfulness, is not accurate. One unpaid invoice does not qualify as a fraud and getting the police to investigate what they will see as a civil business matter is nigh on impossible...

Send a letter stating the facts and demanding payment in seven days, no payment or response in seven days its time to take action.

You may want to have a look at our article on ContractorUK titled How contractors can get paid, if all else fails.

Good luck

[Taita]

jonson did the emails have the full name of the person who you did the work for?

If they didn't then go and see a solicitor.

If they did look at the links NorthernLadUk has pointed you to and follow the examples given.

See a solicitor is best but be aware that he/she is likely to charge upwards of £100 per hour unless you get 'no win no fee' deal. I have known them to charge more than an hour for composing and dispatching a one page letter.