Client Refuses to pay for App - Small Claims Court?

sally365

Hi,

What legal outcomes could come from this situation? What rights does the client and business have in this case?


Scenario:

A client has decided not to pay a business for their services and the mobile app they have created for the client. (The mobile app did not go live nor was any code given to them).

Basically, The business met them 3 times, they both agreed vocabulary on the creation of the app at their 2nd meeting (everything was outlined in the unsigned contract)..The business provided a contract to sign which the client didn't sign.

3rd meeting the client loved the app and they both arranged for a release date of the app, as part of the agreement the business also confirmed a third party company would provide images as part of the package. These images would be taken and used when the app was created - once the app was created the business informed the 3rd party company - the business did contact the 3rd party company via email and phone numerous times telling them they were was waiting to hear from the client.

Note: The client was happy the app was completed and they asked the business to schedule the 3rd party company to meet with them on a given date

Also as part of the package the business was to provide free training to the clients staff members, again the business was to provide this training once the app was completed - the business tired to schedule training after the completion of the app but the client was not available - or interested at this point

Also on the last meeting the client asked the business did i want a deposit, the business refused as they could wait till the app was officially released.

A week later the client decided not to pay the business for the app after all. They decided to go for a ''create your own mobile app'' service. This was found online by the business that the client signed up for a very low quality free app service.

Does the business have any legal foot to stand on? Does the client have the right to not pay?

Sally

JimsAlterEgo

sally365 wrote: »

Hi,

What legal outcomes could come from this situation? What rights does the client and business have in this case?


Scenario:

A client has decided not to pay a business for their services and the mobile app they have created for the client. (The mobile app did not go live nor was any code given to them).

Basically, The business met them 3 times, they both agreed vocabulary on the creation of the app at their 2nd meeting (everything was outlined in the unsigned contract)..The business provided a contract to sign which the client didn't sign.

3rd meeting the client loved the app and they both arranged for a release date of the app, as part of the agreement the business also confirmed a third party company would provide images as part of the package. These images would be taken and used when the app was created - once the app was created the business informed the 3rd party company - the business did contact the 3rd party company via email and phone numerous times telling them they were was waiting to hear from the client.

Note: The client was happy the app was completed and they asked the business to schedule the 3rd party company to meet with them on a given date

Also as part of the package the business was to provide free training to the clients staff members, again the business was to provide this training once the app was completed - the business tired to schedule training after the completion of the app but the client was not available - or interested at this point

Also on the last meeting the client asked the business did i want a deposit, the business refused as they could wait till the app was officially released.

A week later the client decided not to pay the business for the app after all. They decided to go for a ''create your own mobile app'' service. This was found online by the business that the client signed up for a very low quality free app service.

Does the business have any legal foot to stand on? Does the client have the right to not pay?

Sally

you would have to sue them but not thorough small claims court as its for consumers not businesses

Tow

Some types of B2B Transactions up to 2K can now go through the small claims court. The 'business' need to learn to be more professional in the world of writing custom software. The 'app' market maybe more 'relaxed', but there is a reason companies have proper agreements before starting any work. Many SW companies would look a good percentage upfront before even starting any work.

sally365

The business has learned from the experience, but can the business take the client to the small claims court to name and shame? Even if they lost its only 25euro

LowKeyReturn

I'd seriously consider whether you folks should be in business. I assume you're some college lads/lasses doing a start up out of a garage. No harm in that, it's how Apple got started. However you're attitude is completely wrong, in my opinion.

You're contracts should have been properly drafted and you should know the correct procedure for dealing with clients that don't pay. If you can't afford proper legal advice and you fit my above description get in contact with the law school in your institution and see if someone will help you. Naming and shaming clients is not going to win you any friends in a very competitive market place. No one is going to be there to 'shame' anyone in the SmCC anyway and you'd want to be very careful what you publish yourselves should you even get this to court.

Ref deposit - a bird in the hand is worth two in the bush, once part payment has been made people are much more likely to follow through.