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Payment not done can they sue me if I stop woking for them
27-Jul-2023 (In Labour & Service Law)
I am running a proprietorship firm for software development and dealing in USA I am working with one client since a year now client has blocked 3month of payment and giving reason behind this says bad quality of work. He now ask me to handover all the work and fix some issues into previous work for free else he said he will sue me. I had signed master services agreement with them. Due to not payment for months in frustration I have stopped working and also stopped their server for few hours as they were not answering for payment. Now they are saying that they will sue me for harming their business and against cyber crime law. Are they just threatening me or they can take any legal action ?
You have signed the contract do you are bound to abide by the condition s in the contract. If they have specified a particular type of quality you have to adhere to it. Yes if you block them their work may be hampered n they are free to take legal action under cyber law. You r bound by the contract that you have signed.
Helpful?
Sir
Material clauses in the Agreement need to be perused to analyse respective rights and obligation of the parties. So without seeing the agreement it is not possible to give you subjective advises.
Normally, under the agreement you are bound to provide client with bug-free software and codes as per the industrial and professional standards. if there are bug or error in the software, then you are bound to rectify the defect else you will be liable for providing defective services to the Client. However, your liability is only to provide that part of the programming milestones for which you are paid, and not liable to work on remaining milestone for which you are not paid.
So considering the limited facts, i am of the prima facie opinion that if there is defect in the work, then u are bound to rectify them for free, because it is your fault, however, you are not liable to do any addition work for free, unless payment is made to you.
precise advise can be give after knowing full facts of the case and reviewing the MSA
Material clauses in the Agreement need to be perused to analyse respective rights and obligation of the parties. So without seeing the agreement it is not possible to give you subjective advises.
Normally, under the agreement you are bound to provide client with bug-free software and codes as per the industrial and professional standards. if there are bug or error in the software, then you are bound to rectify the defect else you will be liable for providing defective services to the Client. However, your liability is only to provide that part of the programming milestones for which you are paid, and not liable to work on remaining milestone for which you are not paid.
So considering the limited facts, i am of the prima facie opinion that if there is defect in the work, then u are bound to rectify them for free, because it is your fault, however, you are not liable to do any addition work for free, unless payment is made to you.
precise advise can be give after knowing full facts of the case and reviewing the MSA
Helpful?
Adv. Vivek Mapara
Ahmedabad | 100+ Answers
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