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Thanks for your help. We were operating an affiliate program on behalf of a client, under a 12 month contract. Part of the service we outsourced to a family member (Scott) of one of the directors here. The client was subsequently unhappy with the performance of the program in terms of affiliate acquisition. I contacted Scott to inform him that the client wanted to cancel the contract and I felt they had grounds and that I would like to agree a settlement for the remaining 3 months of the contract. I agreed with Scott over the phone a sum of £2750 to terminate the agreement. It was a bit naive, but given he is a family member I thought a telephone call enough of an agreement. However, he has now sent of notice of contract breach, which I can send you along with the original contract.
Scott was directly responsible for acquiring affiliates, and it was the lack of affiliates that eventually lead to the client moving this program in-house. There is also a clause in the contract that required Scott to deliver affiliate payment information no later than the 10th of each month. This was repeatedly missed.
What I need to work out is the best way to respond to the notice of breach, which doesn't expose me to any further risk, but also protects me from paying his over inflated expectation. I have left the offer of £2750 on the table at this moment.
Is there a way I can send these files over to you?
Is there a reason behind persuing the verbal contract approach, as opposed to countering with his own breach of contract?