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Nicola-mod, Moderator
Category: Law
Satisfied Customers: 9
Experience:  Moderator
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i have to pay royalties to a producer based on my sales but

Customer Question

i have to pay royalties to a producer based on my sales but one of my customers went into administration - do I still legally have to pay the royalty for the sales from this customer?
Submitted: 3 years ago.
Category: Law
Expert:  Ash replied 3 years ago.

Alex Watts : Hello my name is Alex and I will help you with this. Please note that I am a working Solicitor and may be on and offline as I have to attend Court and meet with clients, even at weekends. As such you may not get an instant response when you reply as this is not an ‘on demand’ live service, but rest assured I will be giving your question my immediate attention upon return.
Alex Watts : What does your contract state about this?
JACUSTOMER-385molsg- :

I am not sure that the producer's contract covers this eventuality but I will be able to check tomorrow.

Alex Watts : Please and let me know.
JACUSTOMER-385molsg- :

I have not been paid for the sale in this instance so am i legally expected to pay the royalty in this case?

Alex Watts : You need to check the wording - whether it states on the sale itself, or on whether you get paid.
Alex Watts : So check the wording - because it
Alex Watts : if it says on a sale then you would be liable.
Alex Watts : If it says on payment then you would be liable when you get paid.
Alex Watts : But the terms of the contract states - if it is when you invoice then you would be liable.
Alex Watts : But the detail of the contract will confirm either way.
Alex Watts : Can I clarify anything about this for you please? Alex
Expert:  Nicola-mod replied 3 years ago.

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