• Customer threatening for refund of advance

Dear sir,
I own a software firm. I had a contract with a client a few months ago. There were no strong agreement written between us, however the work order state basic things about the payment parts. The client has made a cash advance payment to us, and in later communications we recorded the same in the mails. We have developed most of the system with all expenditure. When we are trying to get things for next release, he is keep postponing things and stating lot of issues that are not originally discussed. This caused lot of expenditure for us till now. Despite this, he started threatening to refund the payment as we couldn't satisfy him. Is there any provision to showcase the expenditure incurred to us and protect ourselves?

Thanks
Asked 10 months ago in Business Law from Chennai, Tamil Nadu
1) there is no question of any refund 

2) based on order placed by customer you have carried out necessary work 

3) enclose detailed statement of work done by you and expenditure incurred 

4) ask customer to make balance payment as per your contract 

5) if customer fails to do issue legal notice for recovery of outstanding dues 
Ajay Sethi
Advocate, Mumbai
23383 Answers
1229 Consultations
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1. The buyer can always raise issues regarding quality of service. If there is foolproof ways to determine the quality of service you have nothing to worry.
2. Since the agreement is not with me I can not mention the merit in their threat of refund.
3. But under the present circumstances I find no reason of worry for you.
4. Make a written representation over mail your defence along with excel sheet of expenditures incurred by you.
Devajyoti Barman
Advocate, Kolkata
5248 Answers
54 Consultations
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1. If there is an agreement executed by and between you two, then both the parties shall have to perform specifically as per the said agreement,

2. File a case against the said party seeking specific performance and claiming interest, damage and cost.
Krishna Kishore Ganguly
Advocate, Kolkata
12143 Answers
233 Consultations
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In the absence of a written contract between both of you he can recover the money through civil court only if he can prove that you did not give the services/goods which you had promised. Email communication can be used as evidence in the court. Dissatisfaction is not a ground to claim refund. There is nothing you need to do till such time that you receive a legal notice from him.
Ashish Davessar
Advocate, Jaipur
18259 Answers
450 Consultations
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You can rely upon SMS exchanged with the customer 

SMS is admissible in evidence 
Ajay Sethi
Advocate, Mumbai
23383 Answers
1229 Consultations
5.0 on 5.0
Yes it can be. 
Ashish Davessar
Advocate, Jaipur
18259 Answers
450 Consultations
5.0 on 5.0
1. Yes, SMSs, emails etc are considered as digital evidences,

2. Digital evidence is a valid form of evidence acceptable by Indian Courts.
Krishna Kishore Ganguly
Advocate, Kolkata
12143 Answers
233 Consultations
5.0 on 5.0
When we are trying to get things for next release, he is keep postponing things and stating lot of issues that are not originally discussed. This caused lot of expenditure for us till now. Despite this, he started threatening to refund the payment as we couldn't satisfy him. Is there any provision to showcase the expenditure incurred to us and protect ourselves?
The customer may tell thousand reasons for his inability which he is trying to cover by putting blames on others. You gather all the evidence in you possession, compile them including the statement of expenses incurred of the projects and the services offered and what were the liabilities of the customer towards it. If he is demanding the refund in writing then you may state all those things which are involved in this project and services offered and explain him that it is you who is eligible for amount for the expenses incurred and not that you are liable to refund anything to him.  You should quote the gist of the compilation and should avoid giving him the entire details now itself.  You should not make him aware of the your entire defence strategy.
T Kalaiselvan
Advocate, Vellore
14161 Answers
128 Consultations
5.0 on 5.0
Thanks you for your valuable inputs. In such cases, does SMS or other means of communication than the eMails can be used as evidences? I have a thread of SMSes on client's agreements and activities to support me.

The client's agreement through email is a valid evidence to prove your innocence as well as the conditions of agreement between you both. 
T Kalaiselvan
Advocate, Vellore
14161 Answers
128 Consultations
5.0 on 5.0

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