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Ash
Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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We are a software company that develop our own web based

Resolved Question:

Attachment: 2015-01-22_103342_aspyre_contract_signed.pdf

We are a software company that develop our own web based applications. Our clients purchase the software from us and then annually pay us a fee for providing support, maintenance and hosting of their data. We have contracts in place that state, if a client no longer wishes to use our application than they must give us 6 months notice prior to the renewal date of their contract. We now have a client that has given us less than 80 days notice of their intention to terminate using our software. Are we entitled to invoice the client for the full 12 months renewal costs?

I have attached the contract in question - Schedule A 8 details the notice period. Our client is saying they are not liable to pay the full cost of the renewal for 12 months and are only willing to pay us 4 months.

Submitted: 2 years ago.
Category: Law
Expert:  Ash replied 2 years ago.
Alex Watts : Hello my name is ***** ***** i will help you with this.
Alex Watts : For now please let me know how much you want to claim?
Customer:

The cost for the renewal of the support, maintenance and data hosting contract is £20,000. This may sound like a lot but the client purchased an 'Enterprise' licence of our software which enabled them to give access to an unlimited number of their staff.

Alex Watts :

Thank you.

Alex Watts :

Yes.

Alex Watts :

The contract is clear.

Alex Watts :

They must terminate 90 prior to renewal.

Alex Watts :

If they did not give you the required period of 90 days then you can in theory charge for the 12 months plus the remaining period.

Alex Watts :

The contract contains all the terms to which you and they agreed to

Alex Watts :

If they have failed to give you the required notice period of 90 days then the contract renews for another year

Alex Watts :

Can I clarify anything for you about this today please?

Customer:

Thanks Alex, that's great. Can I just ask, should I refer the client to Section 15 - Maintenance and support services?

Alex Watts :

Yes I would certainly do that. They are in breach of contract

Alex Watts :

If this does answer your question might I ask you to rate my service before you go today, the button should be at the bottom of the screen

Alex Watts :

If you need more help please click reply

Customer:

Your service has been excellent and I shall score you as such :)

Customer:

Many thanks!

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