Honouring a purchase order


We have a client to whom I was selling a software solution.  The client required 2 licences and issued two separate purchase orders for the same.  The total development cost was more than the amount in a single PO, but the understanding was that the two POs will together cover our costs.

Each PO contained two items

1. The product with a 1 year warranty

2. An AMC for 3 years after the warranty

The product was delivered and paid for according to the first PO and the warranty expired in January 2014.  We were supposed to have signed and AMC contract for the same and raise invoice for it which did not happen and we continued free support so far.

The second product was not accepted for delivery since the client requirement changed.  So after 2 years of negotiations we decided to stop the free support and not to enter into an AMC according to the first PO

My questions are

1. Is it legal for me to refuse to enter into an AMC when I already delivered one item in the PO

2. Is there a legal recourse to make the client pay according to the first PO?

 
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ADVOCATE AND CORPORAE ADVISOR

dear sir

 

You are having recourse for demanding payment under first purchase order.
To advise you further on the second issue, please send me copies of documents

 

                   DR VEDULA GOPINATH              vgnath@gmail.com

 
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Yo cannot arbitrarily decide about stopping free service of AMC once it has been a agreed condition of the contract until the said period of free service is completed/expired.  If the client is not interested in further purchase due to his changed requirements, you cannot force him nor to avenge this you can go against the agreed terms, it will be considered as illegal and you may be drawn to court by the other party.  Consult your lawyer before deciding anything to do  adverse to the issue.

 
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Consultant & Legal Analyst

Depends upon the prescribed terms & conditions of the agreement, not the P.O.. So, any definite opinion can be possible to be formed only after going through the spirit of the terms of agreement.

 
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