I hired a freelance artist. We both signed a contract. Immediately after signing it, he sends me an invoice for the full amount and tells me he wouldn't work until I've paid it.

We did chat before and he told me he wants upfront payment of at least 50%. But he didn't include that in the contract (I let him write it), so I assumed it was not important to him anymore.

The applicable law states that I have to pay after receiving and approving the work, as far as I can tell.

But that doesn't really help me. He was supposed to overhaul the existing main characters for my game, which is already in Early Access. I cannot do marketing until the characters are done because I would have to redo it anyway.

He didn't reply to me since April 5th and I can't hire someone else until this is resolved.

What should I do now? Should I just send him a notice of termination (which I probably can because he refuses to work)? But another artist I found charges about 50% more…

Tom Sloper said:

What are the payment terms written into the contract?

Here are the entire payment terms:

The Client shall pay the agreed upon amount of [redacted] € for the Character models/Game assets creation services as the fees of the Artist (Exact scope of work listed in Annexure A).

The Client will pay the Charges through PayPal using such payment details as notified by the Artist to the Client or any feasible mode of payment to which both the parties agree.

The Client must retain all the receipts of the payments to the Artist.

Tom Sloper said:
Those terms are too unspecific.

Yes, but for that case there is a law which states (translated):

The purchaser shall not be bound to pay the consideration prior to inspecting and approving the work executed, unless otherwise stipulated.

Tom Sloper said:
You may need to hire a lawyer.

I could but it will take a long time to resolve the issue that way. I need to know what to do now.

Beosar said:
I need to know what to do now.

Realistically, right now you hire a lawyer.

You co-created and signed a bad contract and now you need legal help navigating it.

As I read what you wrote, the law says it should be a certain way “unless otherwise stipulated”. Your contract specifies something different so the “unless otherwise stipulated” clause is invoked. If that's all you've got in your contract, your billing and payment terms were terrible, and you are probably bound to what was written in your contract rather than the general law. I don't see anything in that piece of the contract about payment terms, quality of work, inspection times, the ability to request or require modifications, terms of payment such as net-10 or net-30, or anything else that is customary. The contract should also be dispute resolution terms, and escape clauses for both parties.

You signed it, you can be legally bound by it. You are overdue for hiring a lawyer.

No judge will let them get paid upfront like that. It’s not how work works. Save your email and chat logs. Cease communication immediately. Take a chill pill.

On second thought… don’t talk about it online. They may sue for defamation. I’d probably ask to have this topic deleted.

frob said:
Your contract specifies something different

I disagree with that. It does not specify when I have to pay, just that I have to pay. The law would be useless if it was interpreted the way you said. Everyone specifies the amount you have to pay in a contract, so this law would not apply to any contract. That doesn't make any sense.

frob said:
I don't see anything in that piece of the contract about payment terms, quality of work, inspection times, the ability to request or require modifications, terms of payment such as net-10 or net-30, or anything else that is customary. The contract should also be dispute resolution terms, and escape clauses for both parties.

I suppose in that case it falls back to what is stated in the law of the country that applies here, which is btw. not US law.

I don't know if I should name the country (for privacy reasons).

taby said:
No judge will let them get paid upfront like that. It’s not how work works. Save your email and chat logs. Cease communication immediately. Take a chill pill.

I cannot do that. I am still obligated to work with him and pay him if he decided to work.