What is the name of your state? California
I feel that a vendor we contracted to service our website, including managing our monthly paid subscription service, breeched the terms and is now coming after us for more.
The contract called for all fees to be subtracted from the subscription revenue and the remaining profit be divided 75/25% in our favor, net 30 days. These terms were paid as agreed. We also used this individual to help run some services related to the subscription but not included in the contract - there was never a contract related to those additional services of which we were behind in paying because the company (LLC) was not profitable at the time.
In April of 2007 our vendor decided (against our verbal and written objection) to retain all of the revenue from the subscritpion service to pay off the previous debt (there is no offset clause in the agreeement). This was the only viable income our company would have had to grow and attempt to pay down all debt - including our investor and partner debt - especially because our business model changed and we would have been profitable for the first time.
We concluded subscription services in October 2007 when the broadband service contract he had with his vendor expired. 6 months later in March 2008, he is now coming back and claiming there are additional fees in excess of $5,000 and wants us to pay him immediatly.
I feel he breech the only existing contract, and should pay us the 75% that he withheld since April. That we could make payments on the previous debt with these funds and maintain the business. In addition, coming back 6 months after the last bill date is unacceptable and now his problem.
Any suggestions of guidance on what to do next to respond to his request?What is the name of your state?
I feel that a vendor we contracted to service our website, including managing our monthly paid subscription service, breeched the terms and is now coming after us for more.
The contract called for all fees to be subtracted from the subscription revenue and the remaining profit be divided 75/25% in our favor, net 30 days. These terms were paid as agreed. We also used this individual to help run some services related to the subscription but not included in the contract - there was never a contract related to those additional services of which we were behind in paying because the company (LLC) was not profitable at the time.
In April of 2007 our vendor decided (against our verbal and written objection) to retain all of the revenue from the subscritpion service to pay off the previous debt (there is no offset clause in the agreeement). This was the only viable income our company would have had to grow and attempt to pay down all debt - including our investor and partner debt - especially because our business model changed and we would have been profitable for the first time.
We concluded subscription services in October 2007 when the broadband service contract he had with his vendor expired. 6 months later in March 2008, he is now coming back and claiming there are additional fees in excess of $5,000 and wants us to pay him immediatly.
I feel he breech the only existing contract, and should pay us the 75% that he withheld since April. That we could make payments on the previous debt with these funds and maintain the business. In addition, coming back 6 months after the last bill date is unacceptable and now his problem.
Any suggestions of guidance on what to do next to respond to his request?What is the name of your state?
