Summary
The user entered a contract with a U.S. Software company to develop a website and mobile app, with an estimated completion time of 6 months. After 14 months, the project remains incomplete and substandard, causing significant delays in the users business launch. Despite a no-refund clause, the company may be in breach of contract due to delays and poor quality. The user has documented evidence of the issues and is considering legal action for potential loss of income. The contract likely falls under U.S. Jurisdiction, and the user is advised to seek legal advice from a lawyer experienced in international contract disputes. Many such cases can be settled through online correspondence.Full Conversation
The company in question is in America and we are wondering if we have rights to a refund or to sue them even though we are in australia.
You might have rights under both the contract and consumer law. Here are some points to consider:
- Jurisdiction: Check if the contract specifies which country's laws apply and where legal disputes must be resolved.
- Breach of Contract: The company may be in breach for not delivering on time and failing to meet specifications.
Do you have any clauses in your contract that specify jurisdiction or applicable law?
It did state in their contract that they dont offer refunds but im going to assume that doesnt hold up if they have failed to deliver on many fronts with the contract and we are just overall dissastisifed with communications, the product and lack of commitment from their team to deliver what we paid for.
It sounds like you might have a strong case. Here are some points to consider:
- Jurisdiction: Verify if the contract specifies the jurisdiction for legal disputes.
- Breach of Contract: The company may be in breach due to delays and poor quality.
- Consumer Law: Even with the no-refund clause, failure to deliver could override this.
Do you have any documented evidence of the delays and issues?
Would it still be a breach of contract if the due date was only an estimate rather than a stated time for completion even though they have gone over 2x that time frame?
Yes, it can still be considered a breach of contract even if the deadline was an estimate, especially given the significant delay and substandard quality. In Victoria, key points to consider are:
- Reasonable Time: Under Australian Consumer Law, services must be provided within a reasonable time.
- Quality Standards: Services must meet the standards outlined in the contract and be fit for purpose.
Do you have documented evidence of the communication and issues?
If we have withheld launching our company and products over 6 months because of these delays, is there grounds to sue them for potential loss of income? even though we dont have any metrics to work out what we may have made, the delays has significantly derailed our business launch and growth of our company
You might have grounds to sue for potential loss of income due to the delays, even without precise metrics. Here are some points to consider:
- Breach of Contract: Delays and substandard work could constitute a breach.
- Reasonable Time: Under Australian Consumer Law, services must be delivered within a reasonable timeframe.
Do you have any communications that discuss the delays and impact on your business?
yes we have lots of communication and evidence of their delays and the impacts on our business, this was stressed lots of times during our calls and we have had many meetings stressing to them the times frames and how un happy we where but they just kept making excuses and pushing forward. when I questioned them about refunds or compensation they just refered back to the contract and stated that they dont give refunds
It seems you have a strong case based on breach of contract and the impact on your business. Here are some steps you can consider:
- Document Everything: Keep all communications and evidence of delays and issues.
- Seek Legal Advice: Contact a lawyer familiar with international contract disputes.
- Jurisdiction: Verify the contract's jurisdiction clause and consider if you can pursue the case in Australia.
Would you like more information on how to find a lawyer experienced in such cases?
I believe the contract was created by them in the USA so it would fall under USA jurisdiction
Given that the contract likely falls under USA jurisdiction, you would need to consider the following:
- Jurisdiction Clause: Verify if the contract specifies where disputes should be resolved.
- Breach of Contract: Document all evidence of delays and poor quality.
- Seek Legal Advice: Consult a lawyer experienced in international contract disputes.
Would you like more information on finding a lawyer experienced in handling such cases?
Do these sorts of cases normally get settled quickly and can it be done online via correspondence as its a bit hard for me to hop on a plane and fly to america, i simply cant afford that
Many international contract disputes can be settled through online correspondence, especially with strong documented evidence. However, the timeline for resolution varies. Consulting a lawyer experienced in international disputes can expedite the process.
Would you like more information on finding such a lawyer?