I've a small Website Design and Development firm. Recently I entered into a contract with a client where I agreed to build a website for them. The contract was executed on my company letter head and signed by both parties.
I that agreement there is no clause for compensation on termination if the service provider (that's me) cancel the project.
Now I'm suffering from some health and family issues and I cannot complete their work. That's why I requested them to cancel the project/contract and also offer interest @ 4% per month on the down payment amount. I informed this to the client through email.
Now they are saying they will file a law suit against me.
So I've few questions:
1. Whether they can file a suit?
2. Whether any stamp duties need to paid before filing a suit against me and which party will pay the stamp duty?
3. If the contract amount is of Rs.50000 and Advance amount is Rs.10000 how much compensation they can demand?
4. When I surrendered and shown a good gesture by offering an interest on down payment whereas there is not such clause in the agreement, will that be counted as a good deed on my end?
Please help me understanding these.