Signed contract but now they have changed payment terms.

HairyLegs

Hi everyone,

Will try to keep this short and simple;

I signed a year contract with a company to provide my business a particular service. The sales rep that I dealt with, allowed me to pay the fee in four payments quarterly.

The second quarterly payment was due a few weeks ago, but as they owed me money (from sales I had made through their service) I questioned them about it. They said under no circumstances would they pass on any funds until I have paid the full fee, which would be next year.
But I have an email telling me that any funds owed would be transferred twice a month.

I told them about the quarterly payment terms that had been agreed by their company, and they denied it. They said it wasn't in their terms and conditions. There is no mention of any thing to do with payment terms in the t&c. I have proof of the payment terms agreed (a few emails) so asked them to remove/cancel the service.

Their reply was that they could remove me but I would still be liable for the full fee. Knowing that I had proof of the payment terms agreed I didn't bother to reply. They then rang me, and I said I would send them on the emails, that was last week and I have yet to receive a reply.

To me it seems very black and white, but maybe there is something I'm missing. I signed a contract and they have now changed the terms of that contract, surely the contract is now void and I am not liable for the rest of the fee?

Any opinions or advice would be greatly appreciated.

Thanks.

krd

It sounds like they're taking the ****. Using your cash as part of their cash flow.

Contracts can't just be changed to suit a party - whenever they feel like it, unless it states so in the contract.

If it's a small amount of money, and you have documentation to back up your end, then you can tell them to sling their hook. It's not going to be worth either your ,or their, time and money to pursue it. If it's a large amount of money you need to speak to a solicitor.

Beware of phone conversations - they may be deliberately lying to you, with the full intention of at a later date saying the phone conversation had been about something else. And you can't record the phone conversations without their knowledge and permission. Get a written confirmation of anything that was agreed in a phone conversation.

HairyLegs

krd wrote: »

It sounds like they're taking the ****. Using your cash as part of their cash flow.

Contracts can't just be changed to suit a party - whenever they feel like it, unless it states so in the contract.

If it's a small amount of money, and you have documentation to back up your end, then you can tell them to sling their hook. It's not going to be worth either your ,or their, time and money to pursue it. If it's a large amount of money you need to speak to a solicitor.

Beware of phone conversations - they may be deliberately lying to you, with the full intention of at a later date saying the phone conversation had been about something else. And you can't record the phone conversations without their knowledge and permission. Get a written confirmation of anything that was agreed in a phone conversation.

Thanks for the quick reply krd.

I owe them EUR1600 and they owe me about EUR100.

I've asked them to only contact me through email from now on as I want a record of everything said. They're a very new company (few months old) so it's like they are making it up as they go along.

I was going to just sit it out and see what they do, I think I have myself pretty well covered; numerous emails proving the quarterly payments agreed, email telling me when funds would be transferred to my bank account, and then my email requesting they remove me immediately from their service just as the second payment would have been due, although they haven't removed me yet.

krd

HairyLegs wrote: »

I owe them EUR1600 and they owe me about EUR100.

It's not worth either party's side in getting the law involved.

I've asked them to only contact me through email from now on as I want a record of everything said.

They're a very new company (few months old) so it's like they are making it up as they go along.

They probably are making it up as they're going along. Though they may not want to release you from the contract, even though they know they're not going to see payment for a couple of reasons. On their books they're able to book your billing as profit, and then when they eventually don't get paid, I believe they're able to write off loses against tax. You'd really need a bent accountant to explain the ins, and outs.

Litigation is only worthwhile when the cost of the litigation exceeds the amounts of money at stake. And there are good chances of recovering that money.

Procrastastudy

Was in the contract but no mention made in the T&Cs - less straight forward than it first appears.

HairyLegs

Procrastastudy wrote: »

Was in the contract but no mention made in the T&Cs - less straight forward than it first appears.

Hi Procrastastudy, how do you mean exactly?

Procrastastudy

HairyLegs wrote: »

Hi Procrastastudy, how do you mean exactly?

I can only comment in simplistic legal terms but if promises are made after an initial contract is signed then they aren't binding. I'm sure someone will be able to give you a more educated answer - I'm simply pointing out it doesn't seem as straight forward as it might first appear.

HairyLegs

Procrastastudy wrote: »

I can only comment in simplistic legal terms but if promises are made after an initial contract is signed then they aren't binding. I'm sure someone will be able to give you a more educated answer - I'm simply pointing out it doesn't seem as straight forward as it might first appear.

Ah understand.

No everything was thankfully agreed (by email) before contract was signed, good to know though.