59.1-209 - Contracting requirements.
§ 59.1-209. Contracting requirements.
A. Every contract for invention development services shall be in writing andshall be subject to the provisions of this chapter. A copy of the writtencontract shall be given to the customer at the time he signs the contract.
B. If it is the invention developer's normal practice to seek more than onecontract in connection with an invention, or if the invention developernormally seeks to perform services in connection with an invention in morethan one phase with the performance of each phase covered in one or moresubsequent contracts, at the time the customer signs the first contract, theinvention developer shall so state in writing and shall supply to thecustomer such writing together with a written summary of the developer'snormal terms, if any, of such subsequent contracts, including the amount ofthe developer's normal fees or other consideration, if any, that may berequired from the customer.
C. Notwithstanding any contractual provision to the contrary, no payment forinvention development services shall be required, made or received until theexpiration of a four-working-day period commencing on the date on which thecustomer receives a copy of the contract for invention development servicessigned by the invention developer. Delivery of a promissory note, check, billof exchange or negotiable instrument of any kind to the invention developeror to a third party, irrespective of the date or dates appearing on suchinstrument, shall be deemed payment for the purpose of this section.
D. Until the payment specified in this section is made, the parties shallhave the option to terminate the contract, which option may be exercised asfollows: (i) the customer may exercise the option by refraining from makingpayment to the invention developer, (ii) the invention developer may exercisethe option to terminate by giving to the customer a written notice of itsexercise of the option, which written notice shall become effective uponreceipt thereof by the customer.
(1977, c. 649.)