Hiring an app developer may be a necessary step in your business. For instance, the services or products you create may only be available through an app or be the app itself. Therefore, app developers can form a crucial part of your business. Indeed, a breakdown of the relationship between you and your app developer can be detrimental. This article outlines the steps you can take to resolve disputes between you and your app developer.
Know which key terms to negotiate when buying a business to protect your interests and gain a favourable outcome.
What is Your Reason for Taking Action Against Them?
It is essential to clearly communicate what aspects of the service or relationship with your app developer you are unhappy with. Some common issues with particular app developers include:
- milestones not met;
- the app does not perform as expected;
- delays in delivery of service; and
- sub-standard support or delivery of services.
Check Your Contract
Primarily, you should always check the terms of your contract with the app developer. This is because your contract will often form the basis of what you may use to complain against your developer.
Specific terms that you should pay attention to are:
- scope of works term – what specific services are they providing you? Is there any information or materials you need to supply to the app developer?
- payment clauses – when and how should you pay your app developer, and is payment contingent on achieving particular milestones or events in the project?
- timing clauses – is there an agreed time by which the developer should complete the project? Is it agreed that time is of the essence?
- dispute clauses – is there a formal process for you to raise disputes with the app developer?
- termination clauses – on what grounds will this agreement end, and can you terminate if you are unhappy with their services?
- intellectual property clauses – what does the contract say about who owns the software developed after the services are provided or if the contract is terminated?
Consider Your Ideal Outcome
In light of the situation, you should determine this matter’s ideal end goal or resolution. Outcomes include:
- a refund of the fees incurred;
- the app developer to finish development;
- the contract/agreement to be terminated; or
- the developer hand over to you any incomplete or partially completed software.
What Commercial Options Are Available?
Beyond the outcomes listed above, other commercial options may be available to you.
Bring the Issue to the Attention of the App Developer
Your contracts may have clauses concerning how you may bring complaints to them or what happens if a party breaches their obligations under the contract. However, approaching them and bringing the issue to their attention is generally a good first step. How they respond to your communication can also inform how you should proceed with them moving forward.
Negotiate With the App Developer
Depending on what the app developer has done, you may enter longer-form discussions to resolve the issues. As you negotiate, you should be mindful of:
- your overall goals and ideal outcome (at this stage, it may not necessarily be a completion of the project);
- which legal claims you can make, such as considering if you are prepared to escalate this legally if negotiations are unsuccessful; and
- be careful that your discussions or written communications do not terminate the contract, since you may face a damages claim if you unlawfully terminate the agreement.
What Legal Options Are Available?
In addition to these commercial options, there are some legal avenues you can pursue.
Letter of Demand
You can engage a law firm to issue a letter of demand to the developer. The letter of demand may outline the:
- conduct by the app developer that you are unhappy with and consider a breach of the contract;
- legal basis by which the conduct is unacceptable; and
- remedy that you are seeking from the app developer.
Commencing Action in Court or Through a Tribunal
If you have exhausted all of the above options, you may consider bringing an action against the app developer in Court or through a Tribunal. However, escalating a matter to litigation is highly complex and expensive. Therefore, we always recommend seeking legal advice before proceeding with this option.
Key Takeaways
It can be a frustrating experience to have an app developer fail to perform the services you expect. In some cases, you may even consider taking action against them. However, if you decide to go down this route, you must first:
- check your contract with them;
- consider your ideal outcome; and
- explore what commercial and legal options are available.
If you have any concerns regarding disputes with your app developer, our experienced dispute resolution lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 1300 544 755 or visit our membership page.
Frequently Asked Questions
Primarily, you should clarify what parts of the service you are not happy with. Look at the terms of your agreement with the developer, and see whether any clauses deal with this issue. You should also check whether any clauses specify a formal dispute resolution process.
Some common issues with particular app developers might include milestones not being met, the app not performing as expected, delays in service delivery and sub-standard support or delivery of services.
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