Business Contract for Design Services

[wldunbar]

What is the name of your state (only U.S. law)? New Jersey

Hi all, I am freshly out of college and recently went into a contract with a fellow designer with a new business to provide essentially complete branding including: Logo Design, Business Card Design, Website Design, Restaurant Menu Design, Photography & Mailer Design. The clients were basically the worst ever, and consistently requested things beyond the scope of the initial quote of services, but these services were for the most part still provided as we wanted to please the client. We put many additional hours into providing things that the initial quote did not include, and we provided all items that the quote promised prior to the restaurant's opening.

The owners first approached me, and then both I and my partner with frustrations about being able to edit their menu. We let them know that it was unable to be transferred into Microsoft Word to edit (as far as we knew) and that we were responsible only for the design of the menu. To make a long story short, the clients believe they they did not get their full money's worth out of the menu because they had to hire a separate company to transfer it into Microsoft Word for them to easily edit it.

We ended up coming to a conclusion with one of the business partners - who paid us the full amount of the contract and we went about our way. The next morning, the owner advised me that he and his partner felt like they were being "played down" for their money and put a stop payment on the check. At this point they've received everything outlined in the contract, as well as dozens of hours of additional services at no cost. They are now refusing to pay, and wish to continue to "mediate" the issue. Upon asking what their ideal resolution would be, they replied "We don't know."

My question is how do we proceed? Should we stick to our guns and force them to pay for all or nothing? Our contract states that we retain full commercial rights to all assets provided until payment is received.

Should we not charge for the menu design and take the hit?

Should we take the issue further and look at more drastic legal action?

Please help!

 

[quincy]

What is the name of your state (only U.S. law)? New Jersey

Hi all, I am freshly out of college and recently went into a contract with a fellow designer with a new business to provide essentially complete branding including: Logo Design, Business Card Design, Website Design, Restaurant Menu Design, Photography & Mailer Design. The clients were basically the worst ever, and consistently requested things beyond the scope of the initial quote of services, but these services were for the most part still provided as we wanted to please the client. We put many additional hours into providing things that the initial quote did not include, and we provided all items that the quote promised prior to the restaurant's opening.

The owners first approached me, and then both I and my partner with frustrations about being able to edit their menu. We let them know that it was unable to be transferred into Microsoft Word to edit (as far as we knew) and that we were responsible only for the design of the menu. To make a long story short, the clients believe they they did not get their full money's worth out of the menu because they had to hire a separate company to transfer it into Microsoft Word for them to easily edit it.

We ended up coming to a conclusion with one of the business partners - who paid us the full amount of the contract and we went about our way. The next morning, the owner advised me that he and his partner felt like they were being "played down" for their money and put a stop payment on the check. At this point they've received everything outlined in the contract, as well as dozens of hours of additional services at no cost. They are now refusing to pay, and wish to continue to "mediate" the issue. Upon asking what their ideal resolution would be, they replied "We don't know."

My question is how do we proceed? Should we stick to our guns and force them to pay for all or nothing? Our contract states that we retain full commercial rights to all assets provided until payment is received.

Should we not charge for the menu design and take the hit?

Should we take the issue further and look at more drastic legal action?

Please help!

These are business decisions more than legal decisions.

You can negotiate with your client and try to come to a satisfactory resolution, or you can stay firm on the terms of your contract, demanding payment in full and potentially withholding all of your work until paid.

If you force payment, you can perhaps expect a client-backlash in the form of a negative review or two (whether deserved or not) or in the form of word-of-mouth derogatory comments directed at your new business.

On the other hand, if you don't force payment as outlined in the contract, you might as well have no contract at all.

It is a difficult decision you and your partner must make. I cannot make it for you. I can only tell you that you have the legal right to enforce all terms of your contract with the client. Good luck with whatever decision it is you decide to make.

 

[latigo]

=wldunbar;3371847]What is the name of your state (only U.S. law)? New Jersey

Hi all, I am freshly out of college and recently went into a contract with a fellow designer with a new business to provide essentially complete branding including: Logo Design, Business Card Design, Website Design, Restaurant Menu Design, Photography & Mailer Design. The clients were basically the worst ever, and consistently requested things beyond the scope of the initial quote of services, but these services were for the most part still provided as we wanted to please the client. We put many additional hours into providing things that the initial quote did not include, and we provided all items that the quote promised prior to the restaurant's opening.

The owners first approached me, and then both I and my partner with frustrations about being able to edit their menu. We let them know that it was unable to be transferred into Microsoft Word to edit (as far as we knew) and that we were responsible only for the design of the menu. To make a long story short, the clients believe they they did not get their full money's worth out of the menu because they had to hire a separate company to transfer it into Microsoft Word for them to easily edit it.

We ended up coming to a conclusion with one of the business partners - who paid us the full amount of the contract and we went about our way. The next morning, the owner advised me that he and his partner felt like they were being "played down" for their money and put a stop payment on the check. At this point they've received everything outlined in the contract, as well as dozens of hours of additional services at no cost. They are now refusing to pay, and wish to continue to "mediate" the issue. Upon asking what their ideal resolution would be, they replied "We don't know."

My question is how do we proceed? Should we stick to our guns and force them to pay for all or nothing? Our contract states that we retain full commercial rights to all assets provided until payment is received.

Should we not charge for the menu design and take the hit?

Should we take the issue further and look at more drastic legal action?

Please help!

You've been looking at it. And welcome to the real business world. The one they didn't tell you about in class.

Also, it seems a bit drastic in itself to be asking strangers for assistance in making critical business decisions. (If I had had good business sense, I wouldn't have gone to law school.)

Anyway if you choose to stick to your guns, then sue on them on the strength of check! Then let them try to justify the change of heart. Meaning to explain why the check was even cut and remitted if it wasn't intended in payment of a known legitimate obligation.

If I were sitting on the case, that is exactly what I would be asking. "Why then and not now?"

 

[Dave1952]

I won't disagree with the previous comments. It struck me as quite odd that you failed to allow the menu to be editable. Menus do change. Didn't you know that?

 

[Silverplum]

I won't disagree with the previous comments. It struck me as quite odd that you failed to allow the menu to be editable. Menus do change. Didn't you know that?

They likely used an "advanced" typesetting program, such as InDesign by Adobe. Those files don't transfer into Word, though one could copy and paste. That was either short-sighted or manipulative.

I agree with the rest of everything else, by everyone else.