How could a company pay back some money to clients for selling a software (Is it a form of sue?). Could you explain this? It's not like when we buy something and we get a bad product and then you ask the seller to pay you back some money, right? That's quite funny. Most of the time the seller won't even care about whether or not that thing you've bought satisfies you. You're the one who wants it, why don't you check it first before you buy it. Or if the sellers wants to take that responsibility over it, what they most likely going to do is to give you the new stuff as the replacement. But in the case of a company selling some software why would they pay consumers money instead of them being paid? It also doesn't look like the software can't be fixed for the defect.

By the way, is the payment to the client that huge? It seems pretty serious after all (that hurry people going into meeting room with the client, that invisible argument/blame game among the team, that sweat, that irritated feeling, etc. ). Note that this is about selling the software, not particularly the software development contract with the clients.

  • Because they are bribing them to use their (inferior) product over some other (better) product... – Solar Mike Mar 12 at 11:47
  • Thanks mike, I actually want to know more about it. It could be good knowledge for me as a young engineer who doesn't have enough background in business. – Raysu Mar 12 at 11:49
  • I mean we could just tell the clients, what parts of the software that could be fixed right? – Raysu Mar 12 at 11:51
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    This is really broad and hard to answer conclusively. Companies give each other money for all sorts of reasons. Are you asking about a specific exchange between two real companies? Can you give us some context? – dwizum Mar 12 at 12:58
  • A less nefarious situation than everyone seems to be inferring: The client, in their contract, states an expected service level as well as consequences for not meeting it, and the vendor agrees. Sometimes the consequences are straight-up monetary. – Oso Mar 12 at 13:44

It's called a kickback. Basically a bribe to influence a decision.

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  • The former Speaker of the legislature of Massachusetts in the USA is presently serving time in prison for accepting a kickback from a software company. This is serious stuff. – O. Jones Mar 12 at 13:28
  • @O.Jones the software industry has a huge issue with kickbacks. But politicians are notorious for it. – Kilisi Mar 12 at 13:37

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