In the State of Georgia what actions can an outsourced IT firm take
legally regarding non-payment of services, hardware, and software? ie:
Can the IT firm prohibit access to the servers that work was performed
on until collection has been made? Are their any limitations to
rescind software that was installed but not yet paid for?

---

Request for Question Clarification by answerguru-ga on 04 Sep 2004 10:13 PDT

Hi Gene,

The answer to your questions are very much dependant on the
originating contract under which the two parties came together, as
well as the current ownership of the resources in question (you would
need to distinguish between physical and informational resources).

If you can provide this additional information it would make you
question easier to answer :)

Thanks,
answerguru-ga

---

Clarification of Question by gene80-ga on 07 Sep 2004 08:35 PDT

Our service contract reads as follows:

2.	PAYMENT FOR SERVICES.  In exchange for the Services  will pay
compensation to ITK for the Services in monthly installment payment(s)
of $120.  With a base subscription of 2 hours per month. Hours
exceeding 2 hours will be billed at $129.00 per hour.

3.	TERM.  This Contract may be terminated by either party upon 30 days
prior written notice to the other party.

4.	CONFIDENTIALITY.  ITK, and its employees, agents, or
representatives will not at any time or in any manner, either directly
or indirectly, use for the personal benefit of ITK, or divulge,
disclose, or communicate in any manner, any information that is
proprietary to ........, ITK and its employees, agents, and
representatives will protect such information and treat it as strictly
confidential.  This provision will continue to be effective after the
termination of this Contract.

5.	WARRANTY.   ITK shall provide its services and meet its obligations
under this Contract in a timely and workmanlike manner, using
knowledge and recommendations for performing the services which meet
generally acceptable standards in ITK's community and region, and will
provide a standard of care equal to, or superior to, care used by
service providers similar to ITK on similar projects.

6.	REMEDIES.  In addition to any and all other rights a party may have
available according to law, if a party defaults by failing to
substantially perform any provision, term or condition of this
Contract (including without limitation the failure to make a monetary
payment when due), the other party may terminate the Contract by
providing written notice to the defaulting party.  This notice shall
describe with sufficient detail the nature of the default.  The party
receiving such notice shall have 5 days from the effective date of
such notice to cure the default(s).  Unless waived by a party
providing notice, the failure to cure the default(s) within such time
period shall result in the automatic termination of this Contract.

8.	INDEMNIFICATION.  ......... agrees to indemnify and hold harmless
ITK from all claims, losses, expenses, fees including attorney fees,
costs, and judgments that may be asserted against ITK that result from
the acts or omissions of work performed by  ITK's employees, if any,
and ITK's agents.

14.	NEW PROJECT APPROVAL.  ITK and..............    recognize that
ITK's Services will include working on various projects for ..........
  .  ITK shall obtain the approval of .............  prior to the
commencement of a new project

Software and hardware would have been prepurchased by ITK and
delivered to client.  The client hasn't paid for the hardware or
software.

Please clarify what you mean by informational resources. 

Thanks,

Gene