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Rajaprasad (Advocate)     24 March 2011

Default Payment

Hi,

A corporate client of mine defaulted our payment to the tune of 3.5 lacs.  We do not have any formal agreement on commercials.  We have proposals and confirmations only by email. Can I sue my client for his default on payment with the proof of service availed?



Learning

 3 Replies

Vikas Nagwan (Legal Consultant)     24 March 2011

email communications can be treated as a valid agreement ..  you will need to show that you complied with your end of the deal while the opposite party failed to do so... get all the documents at one place including email transactions, invoices etc... hire a good lawyer and start by sending a legal notice...

Deepak Kumar (Sr. Executive - Liaison (Corporate Leasing - North))     25 March 2011

Agreed with Vikas

sanjay kumar (BE/ LLM in Corporate Laws)     25 March 2011

There need not be a formal written contract but there have to be proper documentary evidences showing that there was indeed a contract. In legal terms a written contract is called an 'Express Contract" where as a verbal arrangement is called 'Implied Contract". But there should be proper documents supporting the implied contract. Further, in an implied contract penal actions like LD, penalties etc will not be possible.


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