Rolling Contract Query

mrcopernicus

If a sole trader agrees, over the telephone, to take out a once-off, small ad in a directory and, later, receives in the post and signs a contract for that small ad without realising that, buried in the terms and conditions, is an opt-out box which must be ticked to prevent the contract becoming an annual, rolling contract, is that trader over 12 months later, his business having failed, no longer operating out of the same address and, therefore,unaware that post has arrived at that address warning him that the ad for the now failed business is being placed and he must revert within 28 days if he wishes to cancel it, obliged to pay for the ad? Any opinions much appreciated.

Hogzy

mrcopernicus wrote: »

If a sole trader agrees, over the telephone, to take out a once-off, small ad in a directory and, later, receives in the post and signs a contract for that small ad without realising that, buried in the terms and conditions, is an opt-out box which must be ticked to prevent the contract becoming an annual rolling contract

If signing a contract then you must read all terms and conditions. He signed therefore he is bound by the contract. However he should give notice of his intention not to be bound by automatic renewal of the subscription. It is very strange that mail was still being delivered to a business that has ceased to trade. I have never heard of this happening. It is effectively being delivered to an address that doesnt exist. Usually mail will be returned to sender by An Post.

When you say the business has failed. What do you mean?
Has it gone into Liquidation/Receivership or has it been wound up entirely?

234

I think Caroll v An Post National Lottery Co states that if a standard form contract is known to be habitually unread then the terms contained within must not be too onerous or attention must be drawn to them. However considering that this is a commercial situation I would say that it's just tough luck. You should probably have read the terms and conditions and then it would only have taken one tick to opt out. From the point of view of the directory they made it very easy for you to opt out of the contract; all you had to do was tick a box, no renegotiation of the contract was required.

P.S. This comes without the benefit of practical experience and is probably of no use to you. Easiest thing is to make an appointment with a solicitor or try to negotiate with the directory.

mrcopernicus

Thanks, guys, for the responses. In the end, I rang the solicitor and made an offer to pay two-thirds of the amount due. He was pretty eager to accept. I figured it was just tough luck and I'll be more careful next time. Thanks again for the advice. You were right ...