As a freelance consultant, I made a LOI with a software company to provide services to them against a fee. This fee was supposed to be received after certain milestones achieved by the company in terms of turnover. Earliest start of this payment was assumed to be over 6-8 months from the start of the engagement. Only reimbursements were agreed for out of pocket expenses in this period. 4 months into the engagement, the CEO decides that I am not worth keeping and hence terminates the contract(LOI). When confronted about the effort put in for the last 4 months, I was given in form of email that a meagre sum will be paid - as honororium - no negotiations or discussions. This was supposed to be paid 3 months later from the contract termination date. Reason quoted was no money.

Now that the due date for payment is near, the CEO is keeping quiet and not giving any inputs on payment. The founder of the company says he cannot pay now as there are no funds.

As an individual, what rights do I have to make them pay?

Any suggestions please


From India, Bangalore
Dear Vaidya,
As i believe that, before tendering the services to your client, you must have services agreement which is signed by both parties. which must have contain the terms & conditions of services as well as basic terms & which is properly registered through Notary or Franking/ Stamp papers.
If your documents are on line as mentioned above, then you have reserved rights under "The Indian Contract Act. 1872" for recovering your dues from your client along with damage & loss charges.
you may send one notice from advocate to client, if still there is nothing any positive response from them, you may file case against them in the court, you may seize their property & recover the money.
You can hire good advocate, you can help in this regards.

From India, Mumbai

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