Q: We were contacted by a large firm. We agreed. No response. We got an email saying they are canceling the PO and not paying at all… A: In order to initiate a case, you need to have documents that show the expenses you have been faced so far, any email conversation regarding the agreement…

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A client cancels the contract and refuses to pay. What to do?

Dear sir/madam,

We were contacted by a large firm in the UAE. We agreed, put a contract, and got an LPO from a client. It was a 6-week project.

We started & followed all the processes, got approvals for each task as per the approved project plan, did revisions they requested. For a few items, we needed the client's feedback or inputs but they didn't provide them at all.

For 4 weeks, we sent reminders, calls, emails. No response or updates. It was affecting us; 6 weeks is over.

Today, we got an email saying they are canceling the PO and not paying at all. The PO clearly states "partial payment" is included. Our contract states delays caused by clients are their fault and are payable. We have full proof of work, emails & records.

We want to take legal action and get compensation for all work done, delays, time wasted, and damages as we had to stop other work.

Please advise!

Adilet Midinov

Abdulrahman Alsharhan Advocates & Legal Consultants

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3 Nov 2021, 16:18

Good day.

In order to initiate a case, you need to have documents that show the expenses you have been faced so far, any email conversation regarding the agreement, etc.

In the agreement, there is a provision of dispute in which jurisdiction is applied. If you have any questions, please let me know.

3 Nov 2021, 16:26

Adilet, thank you for your kind reply!

a.) We're a service & consulting company. The expense is the time we put in for research, design, meetings, calls, preparing the specialized documents and deliverables we provided, and the 4 weeks we wasted waiting for them. We have over 30 emails, our approved contract & their PO which references our contract number.

b.) Their PO states jurisdiction is Abu Dhabi, our contract states Dubai.

Please let us know what's the cost to send a legal notice?

Our goal is to get paid for what we delivered and worked hard and honestly. They are taking advantage because we are a smaller company.

3 Nov 2021, 16:32

You can contact me via phone.

Having a physical meeting is much better for any explanation.

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