Dutch company is not following an agreement and refuses to pay a compensation

[Roberto M]

Good evening!

 

We have an issue with a Dutch company: a company wasn't paying us according to the agreement and haven't followed initial agreements, which resulted in a loss for our company.

Some background: we've worked with a Dutch company for many years, after some time, we've started a new project with them.

In brief: we invest in equipment, Dutch company buys our services for 3 years for a certain price and a certain amount of services per month.

We've prepared and sent a contract with all details related to this new project to CEO (also founder) to sign. He hasn't replied, nor asked any questions. In total we've asked to sign via email like 5 times in 3 months period, but silence instead. During these 3 months we were working with Dutch compnay as usual, but CEO somehow has forgotten to sign the contract. No problem, we've worked for many years before and trust each other. After we had have invested and bought some equipment we've started the project, but with 1 month delay or so. The contract wasn't signed by the date we've started. Immediately we've encountered some issues with this new project: Dutch company was buying 1/3 less services than we've agreed (via emails, via messengers, via phone calls). Price was also 20% less, resulting in total 50% revenue per month than was initially agreed. Constant delays with payments etc.

CEO was saying "wait, we are working to fix it". After 1,5 years Dutch company has stopped this project completely.

In total we've received only 25% of initial revenue we've agreed prior project start.

And now Dutch company denies to pay any compensation of our losses, because we've invested money in equipment and time as well. Equipment was sold for a much lower price, resulting in a loss.

CEO escapes any responsibility for issues and our losses.

 

So, dear colleagues, can we have some compensation from a Dutch company, taken in account, that we have written agreements? Unfortunately, it's not a signed contract, but emails and messenges.

 

Thank you!

 

Roberto

[Hans van den Bergh]

Welcome to HL 

27 minuten geleden, Roberto M zei:

taken in account, that we have written agreements? Unfortunately, it's not a signed contract, but emails and messenges.

 

Often it is not necessary to have written contracts, as long as there is proof of an agreement, so the emails and messages will suffice. 

 

29 minuten geleden, Roberto M zei:

can we have some compensation from a Dutch company

 

That is a different matter, are there any terms in the agreement that justify a compensation? 

[Roberto M]

49 minutes ago, Hans van den Bergh said:

are there any terms in the agreement that justify a compensation? 

Unfortunately, we've only included terms in the contract, which was never signed by the Dutch company. We've agreed on duration, amounts and price. The rest was in the contract. We haven't expected for them to break the agreement, taken in account 8+ years of doing business together.

[Gast Wigbolt]

Hi Roberto,

 

where are you from?

 

Quote

In total we've asked to sign via email like 5 times in 3 months period, but silence instead.

and

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The contract wasn't signed by the date we've started.

 

That's a very clear no-go. Why only reminders by mail? And why is your procurement and the whole project not put on hold for this reason?

 

It's unclear now which terms and conditions and which law directly applies. You can now only obtain paid legal advice to determine your starting position based on all details for any proceedings...

 

...do you have any earlier signed contracts with this company with same general terms and conditions? It seems to be an old story of about two years ago? Who are you in this conflict?

 

BR,

 

Wigbolt

18 september 2022 aangepast door Wigbolt

[Roberto M]

On 18/09/2022 at 21:26, Gast said:

where are you from?

Italy.

 

On 18/09/2022 at 21:26, Gast said:

That's a very clear no-go. Why only reminders by mail? And why is your procurement and the whole project not put on hold for this reason?

You mean why we haven't sent a reminder via regular mail? Other party can say that they have received something and it wasn't a reminder, but some other document...

Prior this project we've worked together for many years - our relations were trustful.

 

On 18/09/2022 at 21:26, Gast said:

...do you have any earlier signed contracts with this company with same general terms and conditions?

Yes we do have.

 

On 18/09/2022 at 21:26, Gast said:

It seems to be an old story of about two years ago?

It has happended earlier.

 

On 18/09/2022 at 21:26, Gast said:

Who are you in this conflict?

I'm co-owner of the italian company.

 

Regards,

Roberto

[Roberto M]

I've also read at https://business.gov.nl/running-your-business/business-management/legal-matters/agreements-and-contracts-all-you-need-to-know/

that:
 

Quote

 

How do you conclude a contract?

You can conclude a contract in several ways. A spoken (or oral) agreement is just as valid as a written one. If a deal is proposed by one party, and the other party accepts, you have a contract. Nevertheless, it is wise to lay down your agreement in writing. That way you have proof of the agreement. There are some situations where only a written contract is valid. For instance, when you deliver shares for a private limited company, you must get a deed from an actuary or notary.

 

 

[Daxto.com]

3 uur geleden, Roberto M zei:

You mean why we haven't sent a reminder via regular mail?

In the Netherlands it is customary to send important requests, especially legal supported ones, by registered letter. This acts as proof for any possible future legal proceedings.

Make sure to check any agreements from their side for the existence of where legal issues are to be disputed. This might be agreed upon within the Netherlands. In that case your Italian lawyer can contact a local Dutch lawyer to act on your behalf in Dutch court.

But when agreed upon payments (written agreements) are not received it can often be settled using collection agencies within the Netherlands, even from Italy. Although it will ruin the partnership of course. Collection agencies are often tried before exploring taking this case to court.

But you seem to hint on the fact this has taken place years ago. This might complicate the situation as especially the collection of such payments is bound to strict proceedings that rely on timing too. Taking too long to start these proceedings may result in losing the rightful claim by now.

Legal consultation in collaboration with Dutch colleagues might try to successfully establish if this is the case.