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Did not enter into agreement but consultant asking for compensastion
27-May-2023 (In Civil Law)
We hired a consultant for our startup and shared some of the key responsibilities that he needs to fulfil. Based on that he shared a contract/agreement draft that was under discussion but never agreed upon. He was working on and off for 6 months and failed to fulfil almost every responsibilities and thus we asked him that we cannot continue. Now he claims that we owe him 6 month compensation as mentioned in the agreement. Are we liable to pay that? Is there anything that he can do legally against us?
Legally, one is bound to pay for all services enjoyed by him. Thus, he could drag you to court. Whether he actually deserves payment or not is an issue which court will decide. It will be difficult to say anything without knowing complete details. Please seek consultation. Alternatively, you may wait till he serves a legal notice to you and then proceed accordingly.
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Adv. Rishi Raj Sharma
Delhi | 100+ Answers
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As per Indian Contract Act you would be liable to compensate the consultant for whatever services he provided to you even if there was no written contract as per Section 70 of Indian Contract Act. He can file a suit against you claiming compensation along with interest for the period such compensation has not been provided.
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Adv. Srishti Saxena
Delhi | 100+ Answers
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