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Jo C.
Jo C., Barrister
Category: Law
Satisfied Customers: 69380
Experience:  Over 5 years in practice
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Hi there, Last year I entered into a contract with somebody

Customer Question

Hi there,

Last year I entered into a contract with somebody where by my company provided a platform for the other party to advertise their business on in exchange for a fixed monthly price. Half way through the contract, the other party had issues with the advertising standards agency, thus, stopped paying the monthly price and no more adverts were put up. 3 months later, and this party has just contacted my business explaining we have to resume the contract immediately now that they have sorted their problems out with the ASA, however, we are refusing to continue advertising due to the contract technically being terminated by the other party. We have just been told that the other party are going to sue us if we do not continue with the signed contract. I was just wondering what power we have in this situation?

Thanks
Submitted: 3 years ago.
Category: Law
Expert:  Jo C. replied 3 years ago.
HI.

Thank you for your question . My name is XXXXX XXXXX I will try to help with this.

I'm sorry for the delay you've experienced.

Are you asking if you can escape the contract.
Customer: replied 3 years ago.

Hey Jo,


 


Essentially yes. The advertising they are providing is too provocative and risky to our business. We would consider fulfilling the advertising for them, however, if they were willing to wait and start again on our terms. It does not seem right that all the issues with the contract came from their end of the business, not ours, and now we are being forced to start the contact again when it suits them.

Expert:  Jo C. replied 3 years ago.
Thanks.

How long were you locked in for ?

Jo
Customer: replied 3 years ago.

It was supposed to go from October 2012 - October 2013.

The contract is a very mediocre contract which has no termination terms in it.


 


 

Expert:  Jo C. replied 3 years ago.
Thanks for the information.

Obviously on the face of that document you are still locked in.

You could argue that they have repudiated the contract by failing to run ads for 3 months. It would seem to be a persuasive argument given the facts that you describe.

If they have repudiated the contract then you are not liable to pay.

Hope this helps. Please let me know if you need more information.
Customer: replied 3 years ago.

Would you like to take a look at the contact if I attached it here?

I'm just a little concerned as I don't believe we should have to abide by the other parties urgency to restart the contract considering there was nothing wrong with our platform to stop the contract in the first place.

 

Expert:  Jo C. replied 3 years ago.
OK.

What did you want to know about that?
Customer: replied 3 years ago.

Have we grounds not to continue with the contract based on the other party breaching the terms first, and also for them supplying us with adverts that could have damaged our brand?

Expert:  Jo C. replied 3 years ago.
You could argue that they have repudiated the contract by failing to run ads for 3 months. It would seem to be a persuasive argument given the facts that you describe.

The fact that they have breached the contract doesn't allow you to cancel necessarily unless its a breach of a material term but not supplying for three months is fairly material.
Customer: replied 3 years ago.

Would you suggest then that it would be better to sit down and suggest a way to resolve the issue? Or would we have a solid case if he chooses to pursue things from his end?

Expert:  Jo C. replied 3 years ago.
Its always better to negotiate if you can. Nobody really wants to go to court.

Ultimately if it comes to it though it would be interesting to hear their explanation for not supplying for 3 months.
Customer: replied 3 years ago.

Their explanation for not supplying for 3 months was due to them providing advertising that did NOT abide by the criteria given to advertising by the Governments Advertising Standards Agency...

Expert:  Jo C. replied 3 years ago.
Yes, what I really meant was their explanation for why they think you should carry on paying in these circumstances.
Customer: replied 3 years ago.

Oh I see. Well, I suppose it would be a risk on our behalf to go in like that. I'm sure we can sort it in another way!

Expert:  Jo C. replied 3 years ago.
It would be a risk but then any legal action does always carry that.

If you can put it to bed by negotiation though then so much the better.

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