Letter of Commitment

Business
1

Got a job which we are supposed to get paid 10% fee.

The Project is in phases.

The client says he will pay 6% first via 3 separate companies here in Kenya (and is willing to sign an agreement), and we don’t have a problem with that.

But they’ve also suggested that the remaining 4% will be paid from the different projects their firm is undertaking in either South Africa, Egypt or Rwanda and they are NOT related to the projects which we are offering our services.

Our issues are on the remaining 4%

  1. What if Kenya Project which we are slated to get paid for it has been approved and done, and nothing or no movement on Rwanda, Egypt, and South Africa Projects, how can they justify paying us on a project that has not yet even started?

  2. What if Kenya project has been delayed and projects in the three countries mentioned above are finished, how can they justify paying for a project that has not even started?

They’ve suggested we sign a commitment letter instead of agreement (for the 4%). But I’m not sure if commitment letter is enough considering scenarios stated above and I’m not sure if commitment letter is legally binding compared to an agreement

Thoughts?

2

Toroka. Omwami

3

If there is something that can be used against you, I can almost guarantee that it will. It’s just a matter of time. Don’t agree to anything that leaves you exposed. Most importantly, don’t sign anything before running it by a lawyer.

4

A letter isn’t worth the paper it is printed on. Get it in contract.

5

Ulisaidika omwami?

6

I thought the proposed/ the intended letter must have the following:

a) Make it clear whether there is an intention to make legally binding obligations.

b) If the letter is to be legally binding, but subject to conditions, clearly define such conditions and consequences if these conditions are not met.

c) Include a statement that the terms are only to be accepted with a countersignature from both parties.

d) Clearly, separate any particular provisions that are meant to be legally binding from those that are not.

e) Include a presumption as to the authority of the signatures that bind the parties.

f) Governing Law clause is very important since it’s a clear objective measure of the parties’ intention to create legal relations.

7

Izza omwami, ndio naona Hii. Nilisaidika na mwanakijiji wa hapa who connected me to a good lawyer. Now pursuing the case. Sande Sana.