Breach of a consultancy contract for non performance
My company has signed a consultancy agreement with a private limited indian company.
The services to be rendered in this agreement did not provide any information as a per the performance or timetables to furnish the services.
I have two questions :
1. The Indian company has not paid the remuneration clearly specified in the agreement for lack of performance. does the indian law permits that, while no performance nor timetables was written in the agreement.
2. The agreement did not specify any arbitration clause, but only a one month notice prior the breach.
They have broken only throu an email, and without any the mentionned prior notice.
What is our right ?
Asked 2 years ago in Business Law from France
1) it is necessary to peruse the consultancy agreement signed by your company wit the Indian company and correspondence exchanged to advice
2) since there is no arbitration clause dispute would not be referred to arbitration
3) if the Indian company has committed breach of contract you can issue legal notice and file suit for damages
4) generally in contract time for performance of contractual obligations is specified and on achievement of these mile stones payment is to be released
5) if you have failed to do any work to the satisfaction of the Indian company they would refuse to make any payments
Where did you execute the contract?
Whether your contract was mutually agreed and signed by both the parties?
What do you mean by no performance or timetables was written in the agreement?
Which country law was applicable for the contract or agreement?
How do you expect remuneration to be paid when there is no performance at all?
If there is a mention in the agreement about the termination clause and the condition or contract has been breached by the other party, you can very well issue a legal notice claiming compensation, have you done it?
You may answer the above questions for rendering you more proper opinions.
The Consultancy agreement is generally remains in effect till completion of services as agreed to or termination of an agreement as per the laid down terms and condition.
It is not feasible now to raise objections that the consultancy agreement does not carry the performance standards or timelines, because both the parties to the agreement have agreed voluntarily and signed the same.
As regards to dispute resolution, you have mentioned that arbitration clause is not their in the agreement but one month prior notice is required to be served before termination of an agreement by either of the party. Furthermore, there should be some logical reasoning satisfying the clauses of an agreement before termination of consultancy agreement.
If the company has not followed the clause of one month notice, you can very well take them to the court of law for breach of an agreement and claim damages accordingly.
Advocate, New Delhi
1. An agreement brings into inception mutual rights and duties. If either party has not performed its duties the other will be at liberty to not to perform its duties, but this is subject to a contract to the contrary.
2. A legal notice issued through email by the lawyer of the company is a legally valid notice.
3. Unless the contract is perused threadbare to know the exact nature of performance which was to be made by your company it is not possible to state as to what your legal rights, if any, are.
The person who is not able to put proper questions nor is able to understand the reply by the people who answered his question cannot assess any reply nor can he rate anyone to his understanding.
The author without understanding or giving details asked for in the reply for giving him proper opinion or suggestion to his questions, has hurriedly rated the answer which shows his standard and his comments are disgusting. The admin team of this portal should take care to make the querist to understand. No doubt the rating by the querist will not bother this lawyer because of the querist's ignorance.
1. Have you performed at all? have you rendered consultancy services to the Company?
2. If yes and if there is no inordinate delay in providing your services beyond the level acceptable as per common prudence, then you can claim your remuneration from the company,
3. You can also challenge the termination of agreement for want of the required notice period.