defn of Material Obligation

pietromas

What does "material obligation" mean?

The context is a contract between an Internet Service Provider and a customer.

Specifically, is charging what all parties agree is the correct fee a material obligation?

Thanks

Reloc8

You'd have to read the contract to answer this.

pietromas

Reloc8 wrote: »

You'd have to read the contract to answer this.

Thanks.

I've read it but it doesn't define the term. As it is very widely used I thought there might be a standard interpretation and wonder if it includes, in this case, the ISP only taking the agreed sum from my bank account?

FreudianSlippers

From what I can gather, you're asking about a scenario where x amount is meant to be debited from your account and they're taking y amount.
You're wondering if they can do this?

Step 1 is to contact the ISP and ask why they are doing this - maybe it's a mistake?
Otherwise, they may inform you that their prices have increased (there will probably be a clause in the contract covering this situation).

I could be misunderstanding your question but I hope that helps.

pietromas

OisinT wrote: »

From what I can gather, you're asking about a scenario where x amount is meant to be debited from your account and they're taking y amount.
You're wondering if they can do this?

Step 1 is to contact the ISP and ask why they are doing this - maybe it's a mistake?
Otherwise, they may inform you that their prices have increased (there will probably be a clause in the contract covering this situation).

I could be misunderstanding your question but I hope that helps.

Thanks.

Yes that is it, but the ISP has been spectacularly ignorant over a protracted process of me trying to get my money back despite being repeatedly presented with irrefutable evidence.

Anyway I'll get the money back one way or the other, but I no longer wish to stay with them. The contract permits me to leave when a "material obligation" has not been met. Otherwise they will penalise me heavily for breaking it.

But what is a material obligation?

But what is a material obligation?

FreudianSlippers

I wouldn't imagine that a mistake in billing would be a breach of material obligation. As previously mentioned material obligation is, basically, related to the root of the contract. What have they agreed to do and you agreed to do - breaching this will allow you (or them) to exit the contract (but they've probably stipulated some penalty in the contract if you're in breach).

If you've signed up for a direct debit and the amount withdrawn was different than contracted, your bank will take care of this for you usually - just see your bank manager. Happened to me about a year ago and I was fully expecting to jump though all the hoops myself and my bank manager (AIB) said they would take care of everything (which they did VERY quickly).

pietromas

Thanks for that Oisin.

To me the core of the contract is the exchange of money for a service. They have helped themselves to about twice what they were entitled to over several months. All my bills have been wildly incorrect. For a month they have been ignoring what I have said to them and not correcting the matter. I have finally managed to get them to acknowledge something close to the amount but they refuse to give the money back and will only credit my account which is no good to me as a) I have informed them by registered post that I intend to close the account and b) I can't pay my other liabilities with ISP credit!

I feel that this overcharging and refusal to adequately redress is pretty "material". I just worry that the county court may not agree.

I'll speak to the bank and see if they can help. Thanks for the tip.

FreudianSlippers

Any update on this?

pietromas

OisinT wrote: »

Any update on this?

No not yet. I have asked them yet again for an explanation of their calculations (which are wrong) and insisted that the money be returned to my bank account not my ISP account which I have already instructed them to close.

I expect more of the same in response.

FreudianSlippers

pietromas wrote: »

No not yet. I have asked them yet again for an explanation of their calculations (which are wrong) and insisted that the money be returned to my bank account not my ISP account which I have already instructed them to close.

I expect more of the same in response.

Did you contact your bank manager?