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Client renegotiated agreement - I refuse, am I in breach?

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    Client renegotiated agreement - I refuse, am I in breach?

    Hi all,

    I'm in the situation where a client wanted an iPad app developed for them, it went wrong with their last developer so they got rid of him and found me.

    I picked up the pieces and saw there were many fundamental things wrong with the existing code. My original estimate was around 3 months, but then problems came to light, fundamental data issues on the API side, which another company was responsible for. So I ended up having to deal with these problems first which took several weeks to get ironed out to a working degree and still needed further work as time went on, so, naturally, this impacted on my time and the project time and costs.

    There was no written agreement but there is an email trail of time estimates and agreement of payment.
    The time estimate had to be extended and the project scope creeped and changed frequently but the client continued paying my invoices monthly after a month's work.

    So, now, after 8 months, when we are nearly done, with, perhaps a handful of weeks left to complete the app, one of the directors in the client company wants to renegotiate the agreement. I had formerly dealt with one of the directors acting as technical liaison but the other director, seemingly, wanted the agreement to change and had not really discussed it with his partners. Also, this one director in the recent weeks had made constant change requests, some of which had to be reversed or changed again.

    The new agreement was untenable, less than half what was agreed and a penalty of £200 per day over the date of delivery that he insisted on despite his constant change requests.

    I counter proposed they find someone else to complete it and suggested they look for an outsourcing company in the far east on Freelancer or similar who could work at those rates and walked away.

    So the question is, am I in breach of the agreement?
    Or does the proposal of a new agreement mitigate my leaving as I rejected the new agreement?

    Thanks for the help.

    Jay

    #2
    Has the original agreement been terminated, or have you just walked out?

    Comment


      #3
      He refused to pay me any more unless I signed the new agreement.
      Wouldn't that count as a termination?

      Comment


        #4
        Originally posted by lozisung View Post
        He refused to pay me any more unless I signed the new agreement.
        Wouldn't that count as a termination?
        If the director unilaterally made the original agreement void, then offered you new terms which you had a 'take it or leave it' option then you have simply declined the new contract and ceased work (no contract - no work).

        The old contract was terminated, so yes, it's a termination.

        Comment


          #5
          Originally posted by bless 'em all View Post
          If the director unilaterally made the original agreement void, then offered you new terms which you had a 'take it or leave it' option then you have simply declined the new contract and ceased work (no contract - no work).

          The old contract was terminated, so yes, it's a termination.
          No, the existing contract is not void. Unless you BOTH agree that the existing contract is cancelled then one party changing it is not enough. If you said you reject the amended terms then the director could come back with a termination as defined under the existing contract but couldn't unilaterally rip up the contract.

          Comment


            #6
            Going off what you've said you're not in any sort of breach from your end.

            The client is attempting to unilaterally change the existing agreement, you have no obligation to accept those changes, if you can't come to mutually acceptable terms then that's the end of the agreement, time to walk away with your head held high.

            Comment


              #7
              Originally posted by lozisung View Post
              He refused to pay me any more unless I signed the new agreement.
              Wouldn't that count as a termination?
              Originally posted by craig1 View Post
              No, the existing contract is not void. Unless you BOTH agree that the existing contract is cancelled then one party changing it is not enough. If you said you reject the amended terms then the director could come back with a termination as defined under the existing contract but couldn't unilaterally rip up the contract.
              What lozisung says here suggests the contract was void via a breakdown in the relationship between him and the client.

              Trying to force a change by with-holding monies owed under existing terms is not on. That is enough to void any contract IMHO.

              Comment


                #8
                Just in case you are still negotiating, only base your price on the basis of an acceptance test specification. You pass the test you get paid. This will then prevent him from putting constant change requests.

                Setting out the requirements shouldn't take very long and then negotiate on the basis of these, were the first milestone is a test spec.

                I personally wouldn't walk away I would make a counter offer, and then walk away if he refused.

                I don't see you're in breach of contract. If he wants penalties there has to be a billable change request procedure.
                I'm alright Jack

                Comment


                  #9
                  Originally posted by BlasterBates View Post
                  I don't see you're in breach of contract. If he wants penalties there has to be a billable change request procedure.

                  Spot on. If they're the ones causing the delays and they don't know what they're doing, you could milk this puppy dry!
                  Don't believe it, until you see it!

                  Comment


                    #10
                    Originally posted by lozisung View Post
                    Hi all,

                    I'm in the situation where a client wanted an iPad app developed for them, it went wrong with their last developer so they got rid of him and found me.

                    I picked up the pieces and saw there were many fundamental things wrong with the existing code.
                    You don't want to touch this sort of contract where you "just" have to fix-up some existing code.

                    Comment

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