I cannot emphasie enough the need for this contract - i have practised criminal and civil law for nearly 20 years and a contract saved my skin once...Here is the story
Client responds to advert and comissions me to develop a site for £10k. The client was very difficult to control in terms of changes (Calls up to midnight were not unusual!). After almost 3 months of development and hinderance by the client he and the company decide to bin me - I believe this was due to my refusal to join the company as a director - They tried to sue me for £120K for loss of business, loss of profit and so the list goes on...
I had a clause in my contract that talked about mediation like this contract does and they refused point blankly...they also provided me with material that was not theirs and this was discovered subsequently
They lost! and withdrew their action before it went to court. My contract was there to protect both parties and on this ocassion it protected me...Also accurate records of conversations, emails and any communication were made by me. Material provided was confirmed by signature as their property and did not infringe on any copyright or intellectual property rights - so they were on a loser
Be warned people this is serious business - Just because they have some money to throw around does not make them honest and ethical - This was a new company that had big ideas - Cover yourself from day one!
Regards
Mark
P.S Make sure any contract that you use complies with the law for your country or state
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