1. The Client's Situation
Company A, which provides content solutions, had concluded a maintenance contract with a platform operating company and provided its services remotely. However, the counterparty suddenly made a strong demand for the deployment of on-site personnel, and conveyed a position to the effect that, if A did not comply, it might terminate the contract or impose disadvantages. Given its staffing situation, Company A was unable to provide on-site work, and it requested legal advice on the possibility of a contractual penalty arising and on a strategy for responding to termination.
2. Your Legal Team's Advice
After closely analyzing the contract clauses and the emails, Your Legal Team confirmed that the demand for on-site staffing was based on a "consultation" clause and therefore could not be unilaterally compelled. The team also determined that there were circumstances making it difficult to treat the "lack of technical capability" asserted by the contracting counterparty as grounds for termination, and that, on the contrary, the fact that stable remote maintenance had been carried out over a long period was advantageous to Company A. Accordingly, to enable Company A to respond without legal risk, the team provided a formal notice (a letter rejecting the on-site request and urging payment) in the form of an official document, and designed a strategy for the subsequent response procedure.
3. Result
In accordance with Your Legal Team's advice, Company A formally notified the counterparty of its position rejecting the on-site demand and also urged the counterparty to take responsibility for the unpaid amount. As a result, by checking the legal risks in advance and preparing in practical terms, Company A was able to be ready for any unnecessary disputes.