Pact Policy

1. Introduction and Scope

1.1 Purpose of This Policy

This Pact Policy ("Policy") establishes the rules, requirements, and procedures governing project agreements ("Pacts") created and executed through the Pactroom platform. This Policy supplements and is incorporated into our Terms of Service.

Binding Nature: By creating, accepting, or participating in any Pact on the platform, you agree to comply with this Policy in its entirety.

1.2 What is a Pact?

A Pact is a binding project agreement between:

• Creator(s): Individual(s) or business(es) providing creative services, deliverables, or work product
• Client(s): Individual(s) or business(es) commissioning and paying for services
• Agency (Optional): Business managing or representing creator(s)

Key Characteristics:

• Legally binding contract between parties
• Facilitated but not guaranteed by Pactroom
• Governed by terms specified in the Pact and this Policy
• Subject to Terms of Service and applicable law

1.3 Pactroom's Role

Critical Understanding:

Pactroom is a technology platform that facilitates Pacts but is NOT:

• A party to any Pact between users
• Responsible for performance of obligations by either party
• A guarantor of work quality, timeliness, or completion
• A mediator, arbitrator, or judge of disputes
• Responsible for processing refunds or chargebacks
• Liable for losses from failed or disputed Pacts

What We Provide:

• Digital infrastructure for Pact creation and management
• Payment processing facilitation via Stripe Connect
• File storage and delivery systems
• Communication and collaboration tools
• Activity logs and transaction records for dispute evidence

What We Do NOT Provide:

• Refund processing or management
• Dispute resolution or mediation services
• Judgments on work quality or performance
• Enforcement of Pact terms
• Recovery of funds in disputes

1.4 Parties' Acknowledgments

All Users Acknowledge and Agree That:

• They enter Pacts at their own risk
• They must independently evaluate other parties before entering agreements
• They are solely responsible for negotiating and agreeing to Pact terms
• They must perform their obligations as specified in each Pact
• Platform tools do not guarantee successful outcomes
• All disputes are between users only - platform is not involved
• All refunds must be negotiated directly between creator and client
• Platform fees are non-refundable under all circumstances
• We have no obligation to enforce Pacts or compel performance
• We have no obligation to mediate, arbitrate, or resolve disputes
• We provide transaction logs as evidence only - not dispute resolution services

2. Pact Creation and Formation

2.1 Pact Initiation

Who Can Create a Pact:

• Verified creators with active accounts
• Verified clients with payment methods on file
• Agencies on behalf of managed creators (with proper authorization)

Required Elements for Valid Pact:

1. Clear Scope of Work: Detailed description of deliverables, services, or work product
2. Specifications: Technical requirements, dimensions, formats, quality standards
3. Timeline: Deadlines for delivery, milestones, revision periods
4. Compensation: Total project value, payment structure (deposit + balance or milestones)
5. Deliverable Formats: File types, resolutions, delivery methods
6. Revision Policy: Number of included revisions and scope limitations
7. Usage Rights: IP transfer terms, licensing scope, territorial/temporal restrictions
8. Acceptance Criteria: How client will evaluate and approve work

2.2 Offer and Acceptance

Offer Phase:

• Creator proposes Pact terms through platform
• Proposal includes all required elements (Section 2.1)
• Proposal remains open for client response
• Creator may withdraw offer before client acceptance

Acceptance Phase:

• Client reviews and may request modifications
• Client accepts terms by clicking "Accept Pact" button
• Client authorizes deposit payment as part of acceptance
• Acceptance creates binding contract between parties

Binding Contract Formed When:

• Client accepts all Pact terms
• Client's deposit payment is successfully processed
• Platform generates Pact confirmation
• Both parties receive confirmation notification

2.3 Negotiation and Modifications

Before Acceptance:

• Either party may propose modifications
• Negotiations conducted through platform messaging
• Modified terms require mutual agreement
• Final terms must be documented in Pact before acceptance

After Acceptance (Pre-Work Commencement):

• Modifications require mutual written agreement
• Changes documented as Pact amendments
• Payment adjustments processed as new transactions
• Both parties must approve amendments

After Work Commences:

• Scope changes require formal change order process
• Additional compensation typically required for expanded scope
• Original deposit remains non-refundable
• Additional work may require supplemental deposit

3. Payment Structure and Obligations

3.1 Deposit System

3.1.1 Deposit Requirements

Mandatory Deposit:

• All Pacts require upfront deposit payment
• Minimum deposit: 20% of total Pact value
• Maximum deposit: 50% of total Pact value
• Standard recommendation: 30% deposit

3.1.2 Deposit Payment Process

Upon Pact Acceptance:

1. Client's payment method charged immediately for deposit amount
2. Stripe processes payment and deducts platform fee
3. Net deposit amount paid INSTANTLY and DIRECTLY to creator's bank account
4. Pact workspace and file storage activated
5. Project officially commences

3.1.3 Platform Non-Refund Policy

Refunds Are Private Arrangements:

• If creator chooses to refund client, they do so privately outside platform
• Creator may use bank transfer, PayPal, Venmo, cash, etc. for private refunds
• Platform has zero involvement in refund logistics or enforcement
• Platform keeps its transaction fee to cover infrastructure costs
• Neither party can request platform to process or facilitate refund

Why Platform Fees Are Non-Refundable:

• Infrastructure costs incurred regardless of project outcome (storage, bandwidth, processing)
• Payment processing fees paid to Stripe are non-recoverable
• Server resources consumed during transaction (file uploads, messaging, watermarking)
• Platform services provided (file storage, project workspace, communication tools)
• Administrative overhead of transaction processing
• These costs are sunk once transaction begins

Client Understanding:

• By paying through platform, client acknowledges payment is final on platform level
• Any refund must be privately negotiated and executed with creator
• Platform fee (0.9%-4.9%) is cost of using platform infrastructure
• Cannot dispute platform fee portion through payment processor
• Cannot request chargeback for platform services rendered

Creator Understanding:

• Payments received through platform are final from platform's perspective
• If choosing to refund client (for any reason), must do so privately outside platform
• Platform fee portion cannot be recovered from platform or included in private refund
• Must factor platform fee into any private refund calculations
• Example: $1,000 project with 2.9% fee = Creator received $971. If refunding client $1,000, creator pays $1,000 from personal funds, platform keeps $29.

3.2 Balance Payment

3.2.1 Balance Payment Trigger

Payment Due When:

• Creator uploads final deliverables to platform
• Creator marks project as "Complete" and requests balance payment
• Deliverables meet specifications outlined in Pact
• All included revisions completed (if any requested)

Automatic Balance Charge:

• Client has 7 calendar days to review final deliverables
• If client clicks "Approve," balance charged immediately
• If client does not respond within 7 days, balance charged automatically (implied approval)
• If client does not respond within 14 days, balance charged automatically with extended grace period

3.2.2 Balance Payment Process

Upon Approval:

1. Client's payment method charged for balance amount
2. Stripe processes payment and deducts platform fee
3. Net balance paid INSTANTLY and DIRECTLY to creator's bank account
4. Files unlock (watermarks removed, full-resolution access granted)
5. IP rights transfer per Pact terms (if applicable)
6. Pact marked complete in system

No Holding Period:

• Payments are instant and final
• No 7-day, 14-day, or 30-day holding periods
• Creator receives funds immediately
• Client receives full file access immediately

3.3 Milestone-Based Payments (Optional)

For complex projects, multiple payment milestones beyond deposit and balance can be configured. Each milestone includes a specific deliverable and payment amount, with instant payment upon client approval of that milestone.

3.4 Payment Splits (Multi-Creator Projects)

Multiple creators can participate in a single Pact with automatic payment splitting. All split recipients receive payment SIMULTANEOUSLY via instant direct deposit. Platform fee is deducted before split distribution and shared proportionally among recipients.

4. Deliverables and Work Product

4.1 Deliverable Specifications

Every Pact must clearly specify: deliverable type, format requirements, technical specifications, quantity, quality standards, content requirements, and reference materials.

Sufficient Specifications Example:

• "1920x1080 MP4 video, H.264 codec, 30fps, 2-3 minutes duration, cinematic color grade"
• "Instagram post design, 1080x1080 PNG, brand colors (#34D399, #000000), minimalist style per attached references"
• "React component, TypeScript, responsive mobile-first, Tailwind CSS, documented with Storybook"

4.2 File Delivery and Access

Platform Upload Requirements:

• Upload all deliverables through platform interface
• Maximum individual file size: 5 GB per file
• Supported formats: All common creative formats
• Source files included if specified in Pact

Preview and Watermarking:

• Before balance payment: Files automatically watermarked, low-resolution previews
• After balance payment: Full-resolution, unwatermarked files unlock instantly
• Watermarks applied server-side, cannot be disabled
• Files remain available for 90 days post-completion

4.3 Quality Standards and Acceptance

Acceptance Process:

• Explicit Acceptance: Client clicks "Approve" button (immediate payment)
• Implied Acceptance: 7 days pass without response (automatic approval)
• Extended Implied Acceptance: 14 days pass without activity (automatic approval)

Acceptance is FINAL:

• Cannot be retracted once approved
• No chargebacks or refunds after acceptance (except fraud)
• Files fully delivered and rights transferred
• Project closed and marked complete

5. Revisions and Scope Changes

5.1 Included Revisions

Standard Revision Allowance:

• Standard Projects: 2-3 rounds of revisions included
• Quick Deliverables: 1-2 revisions
• Complex Projects: 3-5 revisions
• Must be specified in Pact terms

What Constitutes "One Revision Round":

One set of feedback on delivered work, where creator implements all feedback items and resubmits. Counts as one revision regardless of number of feedback points.

5.2 Scope of Included Revisions

Revisions INCLUDE:

• Modifications to existing elements within original scope
• Color, font, sizing adjustments
• Layout refinements and copy edits
• Technical adjustments (audio mix, color grade, etc.)
• Bug fixes (for code/apps)

Revisions DO NOT INCLUDE (Considered Scope Changes):

• New elements not in original specifications
• Completely different creative direction
• Additional deliverables or variations
• Expanded functionality (for code/apps)
• Different formats or resolutions beyond original specs

5.3 Change Orders

When client requests scope changes, creator should identify as such, negotiate additional compensation, and document as Pact amendment. Client pays additional deposit for scope change before creator proceeds with expanded scope.

6. Timelines and Deadlines

6.1 Project Timelines

Required Timeline Elements:

• Project Start Date (typically deposit date)
• Delivery Deadline for initial deliverables
• Revision Period (time allocated for revision rounds)
• Final Deadline (absolute final delivery date)

6.2 Business Days vs. Calendar Days

• Business Days: Monday-Friday excluding holidays (recommended for most projects)
• Calendar Days: Every day including weekends (used for urgent projects, must be clearly specified)

6.3 Rush Projects

Rush Pricing:

• Same-day delivery: 100-200% premium
• 48-hour delivery: 50-100% premium
• Rush projects typically include fewer revisions (1 round)
• Tighter specifications required

7. Intellectual Property and Usage Rights

7.1 Default Ownership Rule

Unless Otherwise Specified:

• Creator retains copyright in work product
• Client receives license to use per Pact terms
• Creator may display work in portfolio
• Creator may create similar work for others

7.2 Full IP Transfer (Work-for-Hire)

When IP Transfers to Client:

• Explicitly stated in Pact as "Work-for-Hire" or "Full IP Transfer"
• Client pays premium (typically 50-200% more than license-only)
• All rights, title, and interest transfer upon final payment
• Creator retains no rights except portfolio display (unless prohibited)

7.3 Usage Rights and Licensing

Every Pact Should Specify:

• Purpose: Commercial, editorial, personal, internal use
• Media: Digital, print, broadcast, outdoor, all media
• Territory: Worldwide, specific countries/regions, local
• Duration: Perpetual, limited term (1 year, 5 years, etc.)
• Exclusivity: Exclusive or non-exclusive

7.4 Portfolio Rights

Unless explicitly prohibited, creator may display work in online portfolio, include in case studies, share on social media with client credit, and use as examples in proposals. Client may restrict portfolio use for premium (typically 25-50% more) if confidential or competitive concerns exist.

8. Confidentiality and Non-Disclosure

8.1 Confidential Information

Includes:

• Trade secrets, proprietary business information
• Unreleased products, services, or features
• Financial information, pricing strategies
• Source code, algorithms, technical specifications
• Any information marked "Confidential" or reasonably understood to be confidential

8.2 Confidentiality Obligations

Both Parties Agree:

• To maintain confidentiality of disclosed information
• Not to use confidential information except for Pact purposes
• Not to disclose to third parties without permission
• To protect using reasonable security measures
• Duration typically 2-5 years after Pact completion

9. Cancellation and Termination

9.1 Platform Policy on Cancellations

Platform's Role in Cancellations:

• Provides messaging tools for parties to communicate
• Marks Pacts as "Cancelled" upon request (administrative only)
• Does NOT reverse, refund, or redistribute payments
• Does NOT mediate cancellation disputes
• Does NOT determine who is at fault or who owes what

9.2 Client-Initiated Cancellation

If Client Wants to Cancel:

• Must communicate directly with creator via platform messaging
• May request creator privately refund deposit
• Creator has full discretion whether to refund or not
• If creator agrees to refund, they do so outside platform
• Platform fee remains with platform regardless

9.3 Creator-Initiated Cancellation

Valid Creator Cancellation Reasons:

• Client abusive, harassing, or threatening behavior
• Client fails to provide necessary materials after repeated requests
• Client unresponsive for extended period (14+ days)
• Client requests illegal, unethical, or impossible work
• Client violates platform Terms of Service
• Creator unable to complete due to emergency

Financial Arrangements:

• Creator keeps payment already received
• Platform fee remains with platform
• Any refund to client is creator's private decision

9.4 Mutual Cancellation Agreements

When both parties agree to cancel, they should negotiate terms via platform messaging, determine what work was completed, determine what compensation creator keeps, determine if any private refund will be issued, and document agreement in writing through platform.

10. Disputes and Platform's Limited Role

10.1 What Platform Provides

Transaction Logs and Activity Records:

• Payment timestamps and amounts
• File upload history with dates
• Message history between parties
• Project milestone completions
• Approval/rejection actions
• All platform interactions

Purpose of Logs:

• Evidence for parties' own dispute resolution efforts
• Documentation for legal proceedings if necessary
• Proof of performance or non-performance
• Timeline reconstruction
• NOT platform judgments or determinations

10.2 Common Dispute Scenarios

• Quality Disputes: Client claims work doesn't meet specifications
• Scope Disputes: Disagreement about what's included in original scope
• Payment Disputes: Client refuses to pay balance
• Timeline Disputes: Missed deadlines and delay attribution
• IP Disputes: Usage rights interpretation disagreements

Platform's Position: These are private contractual disputes between users. Platform is not a party and has no involvement. Parties must resolve amongst themselves or via external means.

10.3 Direct Resolution (Required)

Parties MUST Attempt Direct Resolution:

1. Communicate directly via platform messaging
2. Clearly state the specific issue or concern
3. Reference Pact terms and specifications
4. Provide objective evidence supporting your position
5. Propose reasonable resolution or compromise
6. Set reasonable deadline for response (48-72 hours)
7. Remain professional and courteous

10.4 Requesting Transaction Logs

How to Request:

• Email: support@pactroom.com
• Subject: "Transaction Log Request - Pact #[ID]"
• Include: Pact ID, your account email, reason for request
• Response time: 3-5 business days

What Logs Include:

• Complete chronological activity for specific Pact
• File upload history with timestamps
• Message exchange history
• Payment transaction records
• Suitable for legal proceedings or evidence

What Logs DO NOT Include:

• Platform's opinion on quality or performance
• Assessment of who breached terms
• Recommendations or judgments
• Legal advice

10.5 External Dispute Resolution Options

10.5.1 Payment Processor Chargebacks

Clients may dispute charges with their bank/card issuer. This is between client, their bank, and Stripe - platform is not involved. Creator will be notified by Stripe and can provide evidence through Stripe's system.

Valid Chargeback Reasons:

• True fraud (unauthorized transaction)
• Creator never delivered any work
• Creator abandoned project with no communication
• Services materially not as described

Invalid/Abusive Chargebacks:

• Client received services but claims they didn't
• Quality disputes where specs were met
• Client changed their mind after delivery
• Client wants free work

Important: Platform fee remains with platform regardless of chargeback outcome.

10.5.2 Legal Action

Parties may pursue legal action per Terms of Service Section 13. Options include small claims court for smaller disputes, civil court for larger disputes, or arbitration if agreed or required.

Platform's Role in Litigation:

• Will provide transaction logs if subpoenaed
• Will testify only about factual records (dates, payments, uploads)
• Cannot and will not testify about quality, performance, or who was "right"
• Not a party to the dispute

10.5.3 Online Dispute Resolution (EU)

For EU users, the European Commission provides an Online Dispute Resolution platform at https://ec.europa.eu/consumers/odr for free mediation of consumer disputes. Platform will provide transaction logs if requested but will not participate as a party.

10.6 Dispute Prevention Best Practices

For Creators:

• Write crystal-clear specifications in Pact terms
• Over-communicate during project
• Provide work-in-progress updates regularly
• Document all client feedback and approvals
• Screenshot delivered work before watermark removal

For Clients:

• Write detailed specifications and requirements
• Provide clear, timely feedback
• Approve milestones and revisions promptly
• Communicate concerns early (don't wait until end)
• Save all delivered work immediately

11. Platform Policies and Account Enforcement

11.1 What Platform Monitors

• Prohibited services or illegal content
• Fraud, scams, or money laundering
• Circumventing payment system
• Harassment, abuse, or threats
• Intellectual property infringement
• Terms of Service violations

Note: Having a dispute with another user is NOT a violation. Good-faith disagreements about work quality or scope are normal business.

11.2 Policy Violations

Violations May Result In:

• Account warnings with required corrective action
• Temporary account restrictions
• Account suspension pending investigation
• Permanent account termination
• Reporting to authorities (for illegal activity)

11.3 Account Termination

Effect of Termination:

• Loss of access to platform
• Active Pacts must be completed or cancelled
• Outstanding payments still processed (instant model)
• Account balance available for withdrawal for 90 days
• Permanent ban from creating new account

12. Amendments to This Policy

We reserve the right to modify this Pact Policy at any time. Material changes will receive 30 days' advance notice via email and platform notification. Active Pacts are governed by the policy in effect when created. New Pacts are subject to the current policy.

13. Contact and Questions

For questions about this Pact Policy:

• Email: support@pactroom.com

For transaction logs and records:

• Email: support@pactroom.com
• Include: Pact ID, account email, reason for request
• Processing time: 3-5 business days

Important Reminders:

• Platform does not mediate disputes
• Platform does not process refunds
• All disputes handled between users
• Transaction logs provided for evidence only

14. Acknowledgment

By creating, accepting, or participating in a Pact, you acknowledge:

• You have read and understood this Pact Policy
• You agree to comply with all provisions
• You understand your rights and obligations
• You understand platform does NOT resolve disputes or process refunds
• You understand all payment transactions are final on platform level
• You understand any refunds must be arranged privately between parties
• You understand platform fees are non-refundable under all circumstances
• You accept full responsibility for vetting and negotiating with other users
• You acknowledge Pactroom's limited role as technology platform provider only
• You accept that transaction logs are provided for evidence only, not judgments
• You understand platform has no obligation to enforce Pact terms

Your Agreement:

• To resolve disputes directly with other party
• To use platform messaging for all project communications
• To act in good faith in negotiations and disputes
• To accept that platform cannot reverse payments or force refunds
• To pursue external remedies (chargeback, legal action) if necessary
• To not abuse platform, payment systems, or other users

Version: 2.0
Effective Date: January 8, 2026
Last Updated: January 8, 2026

This Pact Policy supplements the Pactroom Terms of Service and is subject to the provisions therein, including disclaimers, limitations of liability, and dispute resolution procedures. Platform does not resolve user disputes or process refunds. All disputes are between users. All payments are final.