Risk of 0 value contract
Reetu Dwivedi
(Querist) 22 May 2014
This query is : Resolved
Dear Sirs,
I am doing a contract which has a 0 value. We want to test our product in market through a supplier whose customers will be using our products.Now this supplier will charge us on the basis order form. And supplier is asking fro an advance payment of whole year,which is not decided yet. and they are not ready to accept advance payment for any lesser period. The risk for us is too high, that if they breach the contract all our money will be gone.
Guest
(Expert) 22 May 2014
Ms. Reetu,
I have some reservations about the genuineness of your problem. Anyway, which product your company deals with to be supplied through the contract with the supplier?
prabhakar singh
(Expert) 22 May 2014
Of course you are right and such type of risk must not be taken,if your facts are really true.
Moreover a business must have a retainer for these kind of advices.
Reetu Dwivedi
(Querist) 22 May 2014
Dingra Sir, suppose you have developed a tool an that tool runs on specific machine, and you want to test it so you will like to search some supplier/ subcontractor who can take it to someone who can use it on trial basis you can call them customer. This trial is done because you want to know the usefulness of your product in market. So your subcontractor taking your tool with the help of his machine to the customer. Hope this explanation is genuine.
Guest
(Expert) 22 May 2014
Expmanation (example) is not genuine.
Did I ask for example through my query? I simply asked for the product type. You could have described about your own product instead of expecting me to suppose anything to be my tools or products.
Reetu Dwivedi
(Querist) 22 May 2014
Sir I just humbly have given an example. Sorry.
Sankaranarayanan
(Expert) 22 May 2014
what is the nature of contract made between you and manufacturer. How you agree all the loss. You yourself told they breach the agreement then you send the notice on it , Consult the local advocate
Guest
(Expert) 23 May 2014
Did I ask you for any example? I am not a child whom you try to teach what is called a product. I simply asked you to state what is your product?
I don't think why you are shy of making a mention of the nature of product and merely giving example or explaining to clarify why you gave example.
Avoiding to reply my specific query time and again itself confirms that your query is hypothetical and academic in nature and you are interested merely to solve your academic problem through experts. That is why raised my doubt by saying that I have some reservation in replying your question.
You are paralegal better read law books to understand what is what about contracts & agreements and come to ask what is your own doubt about the provisions of law by stating what you actually understand of that provision.
Don't try to befool the community members of the expert panel.
Devajyoti Barman
(Expert) 23 May 2014
This seems to be an imaginary or academic query.
Rajendra K Goyal
(Expert) 23 May 2014
Agree with the views expressed by the expert PS Dhingra ji.
Reetu Dwivedi
(Querist) 23 May 2014
Ok back to law books
but they do not deal with such situations.situations. Aur asani se samajh bhi nahi aata :(.
So I think I should get and undertaking from the suppliers.
Guest
(Expert) 23 May 2014
OK, then back to my unaswered old question, you have still not mentioned the type of your product.
May may get or not any fresh undertaking from the supplier, lhir bhi aapko asani se samajh nahi nayega, kyonki aapki problem kewal mangharant hai, aur aapka koi product he nahin hai.
Reetu Dwivedi
(Querist) 26 May 2014
Dear Dhingra Sir, Its a software product.
Guest
(Expert) 26 May 2014
Any compulsion for you to select only that particular dealer to deal with your product?
Further, a question of commonsense, if there is no order form from his side, on what basis he has arrived at the annual figure for the purpose of claiming commission, when as per agreement "this supplier will charge ... on the basis order form?"
