Mumbai | 22 Sep, 2020 (1 year ago)

International Commercial and Contract Disputes

Breach of Contract

We are a IT development company based in Mumbai, India. We gave a development project to a Odisha based company. As per contract we have paid them 80% of the agreement amount and now they are asking us to make additional payment of 15% to complete the bug fixes. as per contract 15% has to be paid after UAT sign-off, they took 8 months do the work and even now it is not up to standard or even deliverable.
Answers
23 Sep, 2020 | 09:34

In the first instance, I would suggest that you try to settle the dispute. However, the appropriate legal action can be initiated by issuing a demand notice and termination of the contract depending upon the provisions of the contract.


Meenal Garg 24 Sep, 2020 | 09:41

You can take post dated cheques from them and a written acknowledgement and give them payment as a loan. This way, if they make any default, you'll be able to recover your payment and also initiate collateral proceedings against the other party.

Asker 24 Sep, 2020 | 00:21

For last 1.5 months we are trying to explain them and asking them to fix the issues, do the testing sign-off as per agreement and we will then make the payment. But they are not ready, we are afraid that due to this pandemic they are into financial problem and if we further make the payment and if they still dont complete the project we will further get stuck. Please suggest

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