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IT Contractor v Software Company


Breach of Contract

Our client the IT contractor had commenced work for a software company without any firm written agreement as to what the terms of engagement were. The parties had discussed a specific project and the IT contractor spent many days working on it over a number of months.

Our client submitted an invoice based on the verbally agreed terms of the contract at which point the Company questioned those terms but did not suggest an alternative and allowed the contractor to carry on working. Suggestions of formalising the contract never materialised.

The Company had paid our client half the invoice amount and agreed to pay the rest on finalisation of the project. There were then some delays during which time the end user client cancelled its contract with the Company.

We advised our client that the cancellation of the end user client’s contract had no bearing on his contract with the Software Company and engaged in correspondence with the Company on our client’s behalf. Having set out the legal position and made it very clear that the matter would be pursued in the courts if necessary, the Company sent a cheque for a significant proportion of the outstanding fees and our client agreed to settle his claim.