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Thread started 04 Mar 2015 (Wednesday) 21:49
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Nonpayment client who signed a contract (with a twist)

 
pixel_junkie
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Mar 04, 2015 21:49 |  #1

Hi guys, so I got contacted by a guy (person A) who was soliciting my services on behalf of his client (person B). We agreed on the fees and I sent a contract for signature to person A who I've been dealing with since the beginning. We even spoke on the phone. Right before the contract was signed, person A ask me to change the address on the contract to reflect the one that belongs to person B since he is the person who is going to be using the photos. I did that and resent the contract which still got signed by person A. Now, I have a feeling that this is going to turn into a non paying client situation. I have the signature and initials of someone who was acting on behalf of another person. Since I don't have the signature of the ultimate client, am I SOL? And if not, what are my options? How do I get them to pay? I appreciate everyone's input in advance. By the way, there was an introductory email so I did get in touch with the main client and he clearly is aware I'm about to perform a service for him. So everyone was on board with it.


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gjl711
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Mar 04, 2015 22:14 |  #2

Person A signed the contract, the I would think that person A is on the hook.


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Mar 04, 2015 22:23 |  #3

Treat this as non-binding legal advice from a jurisdiction other than yours . . . :-)

If you make a contract with a disclosed agent for a named principal, and there is nothing in the agreement that releases the agent from liability, then most likely both the agent and the principal are liable. Obviously, you can't recover the whole amount from both, but both should be liable under the contract up to the contracted amount.

If the agency is a little clouded, then the agent (who signed the contract) is liable, but the principal may not be. The agent may have rights to claim against the principal, but that is separate from your rights under the contract.


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Mar 05, 2015 07:23 |  #4

+1 to what Damien said.

Also, who is supposed to pay you, the client or the agent?


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pixel_junkie
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Mar 05, 2015 07:29 |  #5

Thanks for the input guys.

I think the client is supposed to pay since I think that was the reason the agent asked me to take out his address from the contract and write the one of the client.


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Mar 05, 2015 07:50 |  #6

In my line of work, if we ever have multiple parties where we're hired by one person/company to perform work on behalf of another, the contract explicitly states who is paying us and all involved parties sign the contract.




  
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Mar 05, 2015 08:02 |  #7

DGStinner wrote in post #17461550 (external link)
In my line of work, if we ever have multiple parties where we're hired by one person/company to perform work on behalf of another, the contract explicitly states who is paying us and all involved parties sign the contract.

Yes, I would draft a contract to (1) define the necessary parties, (2) make final execution contingent upon the signatures of all those parties, and (3) reserve any grant of license or other rights until payment is complete.


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Mar 05, 2015 08:51 |  #8

Do you have specific payment terms in the contract?

Get paid before doing the work.
At least, get a deposit before doing any work, and get the remainder in full before delivering the images.


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pixel_junkie
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Mar 05, 2015 09:32 as a reply to  @ DGStinner's post |  #9

Would you be willing to share that exact paragraph so I can plug it into mine? Reworded of course. I'd greatly appreciate it if you would do that!


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pixel_junkie
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Mar 05, 2015 09:35 as a reply to  @ nathancarter's post |  #10

I would but I'm afraid it isn't common practice among other photographers and would be viewed as unprofessional by clients who have gone through the process before.

About the terms, yes and its pretty elaborate and clearly stated- payment due within 15 days, 3% late fee added every 2 weeks plus 1% added daily after the first month of non payment. Client covers all legal fees if I have to chase them. Stuff like that...


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Mar 05, 2015 10:01 |  #11

You will have far better protection by requiring a 50% deposit of agreed services for any new client rather than any amount of legalese. If you sense a problem client, delivering the photos without full payment is your own damn fault.

Best of luck,
Scott


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pixel_junkie
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Mar 05, 2015 12:57 as a reply to  @ sspellman's post |  #12

I wasn't born an accountant. You live and you learn. I'm grateful I've lasted as along as I have without running into this issue.


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dkizzle
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Mar 05, 2015 14:10 |  #13

With any kind of work where you are doing the work before final payment it would be wise to get 50% deposit to get started and 50% on completion.


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tywill39
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Mar 10, 2015 15:19 |  #14

Since it appears Mr A did not have "actual" authority to obligate Mr B to a contract, you would need to prove that Mr. B, through word or deed, led you to believe that Mr. A did. If you can establish that, you can make a claim against both Mr A and Mr B on the grounds that Mr A had "apparent" authority. Otherwise your only avenue for relief is Mr A.




  
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pixel_junkie
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Mar 10, 2015 17:55 |  #15

As long as there's at least one person who I can go after legally, I'm happy. What are my options? Small court, collection agency?


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Nonpayment client who signed a contract (with a twist)
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