Case Study

A Markham based Smartphone Company called HardDC asked a software company

called SoftDC to develop software for them. The software company gave a total

estimate of 10,000 dollars for a total work of 20 days. It was agreed between the two

companies that HardDC would be paying SoftDC 30 percent before the beginning of the

work, 60 percent after the initial version and 10 percent on the competition.

After 10 days of work, SoftDC wrote a letter that the work will take more time since their

chief software developer has left the company. After 15 days SoftDC wrote back saying

that they would be only able to deliver the source codes and would provide an assistant

developer who will finish the rest of the work. After 20 days, when HardDC asked for the

final version, SoftDC told them that it can provide them with 80 percent of the work and

would like the 60 percent as promised. However, fearing the non-completion of the

project, HardDC canceled the contract and asked for a full refund. SoftDC has

threatened to take HardDC to court for a breach of contract.

Case Brief

HardDC versus SoftDC due to an alleged breach of contract

Legal Rationale

According to SoftDC, there was a breach of contract but according to HardDC, the

software company did not deliver them what was promised.

What legal advice would you provide to both parties? Why?