Corporate Law Client Does Not Pay

[sarathreddy]

I am a software contractor. My problem is the client whom I am contracted to is not paying the amount , the hourly pay as per the contractual agreement. I am done with the contract and he has not yet paid and is long due. What are my options. Please advice me.

 

[Michael Wechsler]

Originally posted by sarathreddy
I am a software contractor. My problem is the client whom I am contracted to is not paying the amount , the hourly pay as per the contractual agreement. I am done with the contract and he has not yet paid and is long due. What are my options. Please advice me.

Is the client a corporation? What is the amount in controversy? Is this a breach of contract as it seems to be? Why not send a demand letter and if he doesn't pay, take him to court?

 

[sarathreddy]

Client is a corporation. The amount involved is like $20000. Can you tell me how to write Demand Letter and the other procedures involved. Thanks in adavnce.

 

[Michael Wechsler]

Originally posted by sarathreddy
Client is a corporation. The amount involved is like $20000. Can you tell me how to write Demand Letter and the other procedures involved. Thanks in adavnce.

A demand letter is quite simple -- you state the basic facts of your agreement, what work was being performed, at what rate, what was delivered, how much is unpaid and outstanding, etc. You state several demands for payment were made, when, but they were not honored. You demand that the outstanding amount of payment be made within X number of days or you will have to take your remedies. If the agreement includes software and intellectual property rights, I would state that there has been no transfer of ownership for such software and that any and all use shall be considered infringing conduct for which damages will be sought. You hope for the payment to be made expeditiously or you will be forced to pursue your remedies -- depending upon the circumstances, I may make reference to a suit against both the corporation and potentially against the individual for fraud.

I'd send the correspondence via certified return receipt mail. Do you have a written contract? That is the best weapon you have with regard to the remedies you can use, such as injunctions against using the software.