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Contract variation

2 replies

Buscake · 02/01/2020 18:18

I am just wondering if anyone can point me in the direction of who I can ask about a contract variation. Would it be a solicitor?

My company developed some software and the contract is for a percentage of sales. The software is now being sold as part of a package, as such we asked for a variation. This has come back as - percentage of sales X how many actually use our software from the package.

This doesn’t seem fair to me - our previous contract was for sales, not usage. Any ideas/help/avenues to go down very much appreciated!

OP posts:
prh47bridge · 02/01/2020 19:50

You need a solicitor who deals with commercial law.

Previously, your usage and sales would have been pretty much identical - almost everyone who bought your product would use it. Now they are selling it as part of a package with other software, so some users may buy the package because they want the other product(s) and have no use for your product. From their point of view, paying based on those users who actually use your software makes sense. If you insist on a percentage of sales regardless of usage they will almost certainly offer you a lower percentage than they are currently offering. Depending on takeup of your software that may be worse for you than the deal currently on the table.

Buscake · 02/01/2020 20:06

@prh47bridge thank you for your thoughts and for pointing me in the right direction, I appreciate it

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