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Dimitry K., Esq.
Dimitry K., Esq., Attorney
Category: Business Law
Satisfied Customers: 37927
Experience:  Run my own successful business/contract law practice.
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what are the ramifications of a contract or provision of service,

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what are the ramifications of a contract or provision of service, having been signed by one party, and then being used by the second, and larger, party to convince its partners to launch the service, not having signed it themselves. Then the second party coming back and trying to enforce more punative terms in what was an agreed contract.
Submitted: 3 years ago.
Category: Business Law
Expert:  Dimitry K., Esq. replied 3 years ago.
Thank you for your question.

I am a bit confused, however. On what grounds is the second company using this provision? Did they buy up, or get the contract assigned to them?
Customer: replied 3 years ago.
the contract covers the provision of service, the third parties would not launch this service without signed contract between the two parties, we dont know whether they signed or not. The service has now launched and we are being dragged through a more punative set of liabilities and IP escrow...
Expert:  Dimitry K., Esq. replied 3 years ago.
Thank you for your follow-up.

I am still a bit unclear. From what I gather Company A signed a contact with Company B over services. C is not part of the agreement but is attempting to enforce terms. On what grounds exactly?
Customer: replied 3 years ago.
Company A is providing a custome written service for company B. Copmany B is then in turn providing to company C,D,E,F,G etc

C, D, E, etc would not launch the service withot proof of signed contracts for the provision of that service.

company A agreed and signed the contract

Company B provided this to C, D, E, F etc

Having now launched the service with the first two of the third parties, copmany B has come back to re-negotiate the contract with Copmany A, with terms that are significantly more punitive to company A.

Copmany A (us) are not sure if copmany B signed the contract prior to showing to the third parties, as we have seen no such document, nor do we have any way of finding this out.

I just need to understand if there was impropriety, from a legal perspective, in this use of our signature. To ty and give us more barganing power.

cheers
Expert:  Dimitry K., Esq. replied 3 years ago.
Now I understand, and I truly thank you for the exacting information.

By itself once you signed an agreement with B, both B and A are bound to terms. If B wishes to modify, A does not have to comply, especially if a contract exists. If B claims that C, D, and so forth have issues with the terms, explain to B that those parties are not parties to the contract, and being at most 3rd party beneficiaries of terms, have no ability or right to modify terms. Similarly B, once terms were signed, cannot modify terms with A (or force terms on A) if A does not consent. Even if B ultimately made a bad agreement with C, D, and others, that is not A's responsibility or right.

Hope that helps.

Edited by Dimitry Alexander Kaplun on 10/2/2010 at 6:20 AM EST
Customer: replied 3 years ago.
Dmitry

thank you for this, just to clarify the changes are not being brought by the third parties, it is solely party B that is requiring these changes.

we believed they just used our signature to convince the third parties of contract being in place.

Do the points in your answer still stand?

cheers
Expert:  Dimitry K., Esq. replied 3 years ago.
thank you for your follow-up.

My points still stand--whatever agreement you have with B is still binding. Only if B compels you or really, persuades you to new terms do you have to comply. Otherwise they remain fully liable under the terms as they stand today.

Good luck.

Edited by Dimitry Alexander Kaplun on 10/2/2010 at 6:29 AM EST
Dimitry K., Esq., Attorney
Category: Business Law
Satisfied Customers: 37927
Experience: Run my own successful business/contract law practice.
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