Cash on delivery is extremely rare in the business world, especially when dealing with enterprise customers. While I have no doubt many of Twitter's vendors have recently switched to COD, that is not the norm.
These types of relationships typically work on anywhere from 30 to 90 day terms, depending on the vendor, client, and their history.
“Your Honor, the board voted to pay this guy a salary of nearly that amount - per day. If it would please the court, fuck this guy and the board and please make them pay their bills.”
"Your honor, rather than pay his outstanding debts, this shiftless f***wit used 75 million dollars to fund a SuperPAC to bother people at their homes for the benefit of the Trump campaign."
X/Twitter has its own data centers, this is for physical equipment under X's control. They need to get a judgment (which the article indicates they're working on) before they can do anything. Presumably after months to years of litigation they can then repossess the servers, but then X would probably at the last minute pay the bill.
Shutting down a service that hasn't been paid for seems as simple as getting the power turned off for not paying your electric bill. Why is it worse than not paying for services?
Could you imagine how upset Republicans would be if some random Mexican immigrant used $61m of resources and didn’t pay? But if it’s a rich white guy that owes that much they are fine with it.
Soooo noone here even read the article? Just see Elon and start shitting everywhere? The company suing X was dealing with Twitter before Elon. There was no purchasing contract in place when the suing company placed the $20 million dollar order they are claiming is all custom made and cant be recouped, "the social media platform had not made any firm purchase order when the server dealer went ahead with its purchases and deliveries."
How about we read an article before we start spewing shit everywhere?
When you read the article, it also points to another article that goes further into this case.
...in 2014 it contracted with Twitter to provide "unique, custom-designed IT infrastructure products including rack solutions."...
Seems it was already approved in 2014 for such a long-term relationship in writing. It seems that Elon just didn't want to pay for it even though Twitter was contractual bound to pay.
Which is the whole point. If they had 1 email, 1 PO, 1 documented proof of agreement, this would never be a fuckin court case. What is more likely, that X is risking liability for the $20M + legal costs in court trying to renege $20M down to $18M? All this suing company has to do, as I stated above, is show one acknowledgment and confirmation between the two parties and its an open and close case.
There was a judge (I'm going off memory from hearing it on the radio a year or so ago) in Canada who held a farmer liable for responding to a text with a thumbs up to a contractor asking if he got the contract he sent the farmer. Farmer went into court with the defense he was acknowledging that he received the text but it wasn't enough to convince beyond reasonable doubt there wasn't an understanding between the two.
If Twitter and Elon were trying to weasel out of paying this company, THEY WOULD BE SUING THEM for some made up breech of contract BS like they're doing to advertisers.
There was no purchasing contract in place when the suing company placed the $20 million dollar order they are claiming is all custom made and cant be recouped, "the social media platform had not made any firm purchase order when the server dealer went ahead with its purchases and deliveries."
You're leaving out that the paragraph you're summarizing starts off with "X claims that."
One side says there was a contract. The other side says it wasn't firmed up yet into a binding contract. Neither side has come forward with their evidence.
Also, Wiwynn is also suing for negligent misrepresentation and promissory estoppel, which don't require a contract.
So read my other comment and cited quote pulled right from the fuckin court documents and reported on by MSN. Fuckint hell. It's in every fucking article I've searched. The suing company isn't going off anything but fucking assumptions.
Hahaha yeah otherwise they wouldn't be trying to sue to recoup losses. It happens all the time in sales. I can't even tell you the amount of times I have told new sales reps, I will not place anticipatory PO's without payment confirmation or full compliance with not just the purchase order's parameters for payment on large orders but also an email or otherwise documented acknowledgment of our sales order confirmation. Especially in any case where:
The sales rep has a PO from customer but no payment confirmation/information OR
If it's an order over, let's say $10,000 OR
If it's the first time customer is purchasing from us and they want to make a blanket order OR
If they're an international customer placing ANY orders over $500, or have seperate countries for billing and shipping address, or they're shipping to a country on our "fuck shipping to these countries" list
All those scenarios happen and happen often. Theyre not 100% of nepharious lost revenue cases but I'd say they make up 80-90% of the shit companies have sitting on a warehouse top shelf. Only getting moved to make room for other stuff.
Any business doing fabrications or custom fuckin anything, also will 100% of the time have a signed drawing or print, payment in full before it's released to production floor, usually a +/- 5% runoff or shorting stipulation for any qty over 1,000-3,000 custom anything, and constant communication through out the entire process.
For this exact very real very common shit storm.
So and so's cnc machine broke down we can only make 1,000 of the 10,000 you ordered.
It was a government contract to redo the electrical work at Governor Cuomo's house, how should I know he was going to be removed from office?
Everything this lawsuit outlines, fuckkn screams new business, 1st large contract. All the need is one email, one purchase order, fuck even just a sales order from Twitter and they wouldn't ever make it close to a court house before the Twitter boardmembers looked at the liability, the legal costs and the very slim liklihood they would come out better than if they paid the $20 million. And anyone who argues that $20 Million is enough to try and skip out on and risk letting it go to court has no fucking idea to the quantifiable difference between $20 million and $8-$20 Billion (what im guessing Twitter is still worth assuming it was about $40B when Elon bought and estimates have it between 50% and 80% the value when it sold. Even at the middle $14B, $20M is only 0.14285714% of $14B. No that's not a mistake the decimal is where it should be lol. Check it by multiplying $14B*0.0014285714
How about we read an article before we start spewing shit everywhere?
Good luck lol. The top comments are almost always people that didn't actually read the article, just the headline. I see it on practically all social media sites, not just Lemmy.
If you've been in IT since '98 you ought to know this isn't a social media site lol. It's a social forum for communities of users with like minded interests. Most daily social media users get weeded by any UI that isn't 1-3 giant app buttons to sign you into everything on every device you ever did and will own.
Lol plus not many people here are absolute fucking psychos like you with your Lemmy profile pic hahaha fuck you are a madman lol.