What is the name of your state? Illinois
I have a consulting company and a while ago at the beginning of the year i contract a client into using our services.
In the contract he paid 1/2 of the fee up front and had the possibility to receive 1/4 of the fee back if the service we were providing failed.
So for numbers lets say the contract was for 10,000 usd and 5,000 was paid up front with the return of 2,500 should the project be unsuccessful in phase 1.
The client paid the moneys and the project started. We indicated to the client that what they were trying to do would most likely end in failure. This is a registration service to provide a service and they were trying to say they would provide every service without the actual means to provide any of them.
I know it is hard without the exact specifics but please bare with with me.
SO after we mentioned they need to provide proof showing ability to provide each service we stopped receiving any communcation. 6 Months later i have only received a response one maybe every other month indicateing they will get back to me soon.
There is a clause in the contract that indicates if the client should cancel the contract then the full service fee must be paid.
My honest belief is the company worries they will be required to pay the additional 50% of the fee. Thus they want to ignore it and push it off until we just forget about it.
But i am holding 25% of a fee that in contract could be returned if the service was not successful so i cant really do anything with that money.
Here is what my question is::::
I want to send a statement indicating that we will not seek the additional 50% of the fee if they decide to cancel. We also want to state that if we do not receive some sort of communication we will consider the agreement canceled by the client and the money they had paid already will be forfeited for services already rendered.
If they continue the project then we will be happy to provide the agreed service but do not want to sit in limbo forever.
In this case what am i legally allowed to do. There is nothing in my contract that covers no communication or work being done.
Can i say that if i dont get a response i will cancel and keep the fees already paid. In theory if they are quiting then i am not seeking the additional 50% of the fee that is in the agreement as owed to me upon cancelation.
I just dont want to jump out there and think i am doing something sensible and legal to find i have no right to do this.
Any help would be greatly appreciated.
Thank you
B
I have a consulting company and a while ago at the beginning of the year i contract a client into using our services.
In the contract he paid 1/2 of the fee up front and had the possibility to receive 1/4 of the fee back if the service we were providing failed.
So for numbers lets say the contract was for 10,000 usd and 5,000 was paid up front with the return of 2,500 should the project be unsuccessful in phase 1.
The client paid the moneys and the project started. We indicated to the client that what they were trying to do would most likely end in failure. This is a registration service to provide a service and they were trying to say they would provide every service without the actual means to provide any of them.
I know it is hard without the exact specifics but please bare with with me.
SO after we mentioned they need to provide proof showing ability to provide each service we stopped receiving any communcation. 6 Months later i have only received a response one maybe every other month indicateing they will get back to me soon.
There is a clause in the contract that indicates if the client should cancel the contract then the full service fee must be paid.
My honest belief is the company worries they will be required to pay the additional 50% of the fee. Thus they want to ignore it and push it off until we just forget about it.
But i am holding 25% of a fee that in contract could be returned if the service was not successful so i cant really do anything with that money.
Here is what my question is::::
I want to send a statement indicating that we will not seek the additional 50% of the fee if they decide to cancel. We also want to state that if we do not receive some sort of communication we will consider the agreement canceled by the client and the money they had paid already will be forfeited for services already rendered.
If they continue the project then we will be happy to provide the agreed service but do not want to sit in limbo forever.
In this case what am i legally allowed to do. There is nothing in my contract that covers no communication or work being done.
Can i say that if i dont get a response i will cancel and keep the fees already paid. In theory if they are quiting then i am not seeking the additional 50% of the fee that is in the agreement as owed to me upon cancelation.
I just dont want to jump out there and think i am doing something sensible and legal to find i have no right to do this.
Any help would be greatly appreciated.
Thank you
B
