Consulting Agreement with payback clause
4 years ago
Hello,
I had joined a company to help them build a new division on a consulting agreement 7 months back. The agreement is for 3 years. The business did not pick up as expected and there is a huge pressure from the investor for returns, as he is only looking at monthly returns and not ready to wait for the business to pick up. As per the agreement, if I quit in the middle, I have to pay back all the amount he has invested till date. The current investment has been utilized towards salaries and office expenses. The total amount invested till date would be around 20L
I would like to quit and would like to understand if there is any way that I can fight against the amount to be repaid. If nothing works, I am willing to pay the amount paid towards my salary back. We have put in efforts but the business has not picked up as expected. Please suggest a way out.
There will be so many issues you can raise. Please come to my office and share or online.
Thanks.
Shreyash Mohta
Responded 4 years ago
There are cases whereby such provisions make it binding to pay the money back. It is very much important to look into these small provisions so that do not become a pestering factor at a later stage.
Thanks.
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