Breach of contract between indian it company and foreign it company
varunm
(Querist) 29 December 2013
This query is : Resolved
Hi everyone.
We are a private limited IT Company (India) and had entered into a contract with a Foreign Company to provide software services and website portal.
It was a big on-going project. The foreign company provides work one by one and paid time to time accordingly to the us(Indian company).
some days before the foreign company ends the project and said that we are taking too much time to complete things. We explained to the foreign company that it was not our fault as the server was too busy to work on.
suddenly, the foreign company asked us to give the source code of the website portal and he has no issues for the non performance. we have acted accordingly and provides the source code. (note: the foreign company has ended the project ,not us)
The foreign company said " we are in the business and have no hard feelings. we would work on some other projects later" and suddenly signed out of skype.
later after one day , the foreign company send us an email stating that we have to pay penalty/fine for the non performance of the contract. and said that we have not completed the work on time.
first of all, contract doesn't have any clause for fine, penalty, breach of contract as well as time limit for the contract, as the contract was a on going contract.
Now they are threatening us that we have to pay the fine of 6000$ in 7 days, otherwise they will serve us with summon of the English court. also contract doesn't have any clause regarding any law or court, whether Indian or English law would be applicable if breach of contract arises.
(Note : they just send us a normal contract and a NDA agreement.
They have paid ,till now, to us around 7000$)
what to do in this situation and what are the defenses. and they have ended the project (breach of contract)?
ajay sethi
(Expert) 29 December 2013
commercial query . company can afford legal fees
varunm
(Querist) 29 December 2013
Yes company can.. but thing is are they ,the foreign company, liable for the dues or not.
prabhakar singh
(Expert) 29 December 2013
NO BODY CAN ADVICE WITHOUT EXAMINING THE AGREEMENT.VISIT PERSONALLY A PRACTICING LAWYER OF CONTRACTUAL LAWS.
Devajyoti Barman
(Expert) 29 December 2013
Take professional help of an advocate on payment of his fees.
Rajendra K Goyal
(Expert) 29 December 2013
for commercial query please get professional assistance.
T. Kalaiselvan, Advocate
(Expert) 30 December 2013
You may take the assistance of a law firm practicing Business law, who will be in a better position to solve the issue.
