Hi,
We are a Software firm based in London. Initially when we setup up our company an year back, we had several meetings with a many consultancy firms and many similar IT companies for business partnership. During the course of this activity we selected a company to help us in introducing to new business contacts and this company promised to introduce us to new business.
We had several discussions on services to be offered by them but never entered into any NDA or a business contract or issued a Work order/Purchase order or entered into any kind of agreement for their introduction fees or commission or their rates. We wanted them to bring some business and based on the business they bring we wanted to decide on the agreement/contract or the fees to be payable to them. THis was clearly communicated to them and told them that once they bring business then we can consider paying the introduction fees or some kind of renemureation for their service.
This one company has introduced us to a client, and based on that we did some staffing business with the new client that he has introduced for a period of 4 -5 months. During the course of this there was no contract or any kind of agreement was signed for any introduction fees. From the beginning we have expressed that we are willing to pay some introduction fees for whatever business introduction given by this consultancy firm but nothing was mutually agreed or signed. We were always under the assumption that it would a one time charges for the introduction and we can pay the same once we do the business and after mutual discussion.
Now this consultancy firm is sending us regularly monthly invoice quoting placement of a contractor (not the introduction fees), bills mentioning that monthly fees of 20GBP/Day for placing a contractor for 4 -5 months and sending us the demand notice to pay the invoices that too with fine of 500 GBP for each invoice which we never agreed or was discussed. When further we tried to sort this isssue out by talking to that company the company is is quoting some mails which does not show any approval of the contract or terms of engagement or any commercials involved in this transaction.
Our several discussions to tell him that we do not have a contract/agreement with that company and we are willing to talk, agree upon some nominal fees for the business contact introduction and close this matter have totally failed. Further to that this company has not agreed on anything and he is threatening to take us to the court.
We have spoken verbally to them couple of times after they have sent us an demand notice for the amount that they are claiming which is less than 4000 GBP and given them two options.
1. An one time fee for their introduction service which is about 400 GBP + Tax
or
2. Second one is we have told them that we would give 2.5% to 3% of the monthly bill for the business that we have done with the client they have introduced.
This party have refused to accept either of the options and they have refused even to talk logically. The only word they use to communicate is "Pay in full for our bills or we will take you to court". Looks a bit arrogant but that is the fact.
After the discussions have failed to produce any result, we have not sent them any mails or official communication about our offer or our intention. We have only spoken couple of times on phone and had a meeting in person to settle this issue.
Now,
1. Do we have to send them an mail rejecting their Demand notices and all the invoices they have sent to us and terminate their services(for which we never signed any agreement or they never proposed any contract to be signed. Not even an NDA) and convey to them stating that we can only offer you these two options and nothing more than that.
2. Is it a wise thing to send them this communication on a official document such as on letter head of the company to their registered address or both.
In this scenario please suggest us the appropriate action plan and advice us on how to proceed.
Thanks,
MBK
We are a Software firm based in London. Initially when we setup up our company an year back, we had several meetings with a many consultancy firms and many similar IT companies for business partnership. During the course of this activity we selected a company to help us in introducing to new business contacts and this company promised to introduce us to new business.
We had several discussions on services to be offered by them but never entered into any NDA or a business contract or issued a Work order/Purchase order or entered into any kind of agreement for their introduction fees or commission or their rates. We wanted them to bring some business and based on the business they bring we wanted to decide on the agreement/contract or the fees to be payable to them. THis was clearly communicated to them and told them that once they bring business then we can consider paying the introduction fees or some kind of renemureation for their service.
This one company has introduced us to a client, and based on that we did some staffing business with the new client that he has introduced for a period of 4 -5 months. During the course of this there was no contract or any kind of agreement was signed for any introduction fees. From the beginning we have expressed that we are willing to pay some introduction fees for whatever business introduction given by this consultancy firm but nothing was mutually agreed or signed. We were always under the assumption that it would a one time charges for the introduction and we can pay the same once we do the business and after mutual discussion.
Now this consultancy firm is sending us regularly monthly invoice quoting placement of a contractor (not the introduction fees), bills mentioning that monthly fees of 20GBP/Day for placing a contractor for 4 -5 months and sending us the demand notice to pay the invoices that too with fine of 500 GBP for each invoice which we never agreed or was discussed. When further we tried to sort this isssue out by talking to that company the company is is quoting some mails which does not show any approval of the contract or terms of engagement or any commercials involved in this transaction.
Our several discussions to tell him that we do not have a contract/agreement with that company and we are willing to talk, agree upon some nominal fees for the business contact introduction and close this matter have totally failed. Further to that this company has not agreed on anything and he is threatening to take us to the court.
We have spoken verbally to them couple of times after they have sent us an demand notice for the amount that they are claiming which is less than 4000 GBP and given them two options.
1. An one time fee for their introduction service which is about 400 GBP + Tax
or
2. Second one is we have told them that we would give 2.5% to 3% of the monthly bill for the business that we have done with the client they have introduced.
This party have refused to accept either of the options and they have refused even to talk logically. The only word they use to communicate is "Pay in full for our bills or we will take you to court". Looks a bit arrogant but that is the fact.
After the discussions have failed to produce any result, we have not sent them any mails or official communication about our offer or our intention. We have only spoken couple of times on phone and had a meeting in person to settle this issue.
Now,
1. Do we have to send them an mail rejecting their Demand notices and all the invoices they have sent to us and terminate their services(for which we never signed any agreement or they never proposed any contract to be signed. Not even an NDA) and convey to them stating that we can only offer you these two options and nothing more than that.
2. Is it a wise thing to send them this communication on a official document such as on letter head of the company to their registered address or both.
In this scenario please suggest us the appropriate action plan and advice us on how to proceed.
Thanks,
MBK
