Paid when paid terms enforceable???

I wonder if anyone can advise as to whether 'paid when paid' terms are lawful? I am a service provider helping SME's comply with Health & Safety legislation, COSHH IOSH etc and ran some training courses on behalf of a client who invited third party suppliers and customers to attend. I had no problem with this but was told that my invoice to the main client wouldn't be paid until they had been paid by their third party attendees. I tentatively agreed to this but raised my own invoice on 30-day terms (thinking their own payment terms would be something like...) This was 18 months ago and after managing to get them to agree to pay a part-invoice for attendees who had 'allegedly' paid up to that point, I am still outstanding the remainder. From what I can find on the Net, 'paid when paid' terms have been successfully challenged in law as detrimental to the sub contractor but any clearer advice would be very much appreciated!

Thanks David...I don't doubt you're too far wrong...

Apparently they did put it in writing to me but if they did I didn't sign anything and issued them with an invoice on my 30-day terms. They use the phrase 'shared risk' all the time and I have very politely replied that in the spirit of fairness and reasonableness and to share 'equally' in that risk (it feels like its more mine so far...!)that I will gladly contact any of the delegates who have (allegedly) yet to make payment on the basis of a 'shared' credit control function and a 'shared' gain to expedite payment. They have gone quiet on this one but I have a list of names and companies so I could contact them myself on this basis but I guess I risk tee'ing them off altogether! My thought is to write to them asking for the list of attendee payments outstanding so that I can do 'my bit' and contact them for the common good, or offer to send a blanket email to all of them! If I appear to be playing nice then hopefully it will force their hand rather than have them risk red faces and raised eyebrows.

Any other suggestions more than welcome though!!!

Hi Ted,

Sorry we somehow missed your initial post!

In all honesty we can not see how a clause such as the one you allegedly agreed to can be construed as anything but grossly unfair.

Your contract was with the client, the client had a contract with the individual attendees. The fact the client has not recovered all the payments is neither here nor there as your company has a contract with them, **not** the attendees.

We would wager that all this talk of "shared risk" is largely hot air and the simple fact is that they are using your money as an interest free loan in their own business.

Our solution would be to send a final demand to your client, outlining the unacceptable wait and request immediate payment in full. If you do not receive a positive response, we would suggest you add the charges based on a thirty day payment terms and proceed to chase them as normal.