Legal story/question
Legal story/question
Author
Discussion

UKbob

Original Poster:

16,277 posts

295 months

Wednesday 20th June 2007
quotequote all
We developed a website at a hugely discounted price for Person X, who I knew well, who sold the site to a third party (Company Y). The site was always for Company Y, we just had a middleman.

We were never paid by Person X for the design. Its just a design, nothing too elaborate.

No contracts exist. I had a verbal agreement that Person X (who I knew well) would pay for the design which they were giving to Company Y...

1) Does the design therefore belong to my company, given that it was never paid for? Id imagine yes.
2) And am I entitled to approach Company Y and ask for either payment, or request that they stop using the design?

Given that I knew Person X, I was very lenient and gave them over two years to come up with the money, which they have not done. I have no desire to take them to court and will not be doing so, in fact I cant get hold of them and believe Person X's company has ceased trading... but the design is still online and is being used by Company Y who I would like to approach and make a further reduced settlement offer. I assume I'm entitled to do so?

Many thanks in advance, you splendidly knowledgeable creatures wink

JustinP1

13,363 posts

260 months

Wednesday 20th June 2007
quotequote all
First thing:

"No contracts exist. I had a verbal agreement..."

A verbal agreement is just as binding a contract as one written on a hankerchief or one on 50 pages of solicitor-bound paper.

Technically you have no right to ask the new company for the money directly, as you never had a contract with them.

You do have a contract with the middle-man however, so I would certainly chase him. However, in practical terms you may need to threaten legal action, which you dont want to do. If it is any use however, I think the statistic of 'small claims' which are settled before court are over 95%.

It really depends if the new user has already paid for the use of it. If they have then it will be very harsh on them to try or expect them to pay again as they have already done that in good faith.

However, then if it does't rile you at all that a middle man has got paid for YOUR work but has kept your money then you are a better man than I!

Without knowing the relationship you have with the guy, if it one in which he does this to you then it may not be a relationship worth keeping!