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Vincent2013
Vincent2013, JustAnswer Expert
Category: Law
Satisfied Customers: 213
Experience:  Qualified solicitor and barrister (non-practising) with 7+ years experience
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we have received formal notification that one of our clients

Resolved Question:

we have received formal notification that one of our clients wishes to terminate a contract with effect from the 1st November 2013. They would like agreement from us to conclude all bookings booked and not yet taken but allow their new provider to start making bookings from the 1st September. I would like to know if I can advise them that I would like them to honour their 3 month termination period and let the new provider take over on the 1st November. I will assist in the transition period thereafter and supply the new provider with our management data to date.
Submitted: 4 years ago.
Category: Law
Expert:  Vincent2013 replied 4 years ago.

Hi thanks for your question. My name's XXXXX XXXXX I'm going to assist you with this.

First, could you give me a little for information. Most importantly, what sort of services you provide and on what basis you are paid for them (i.e. is it a fixed fee agreement, payable monthly, or do you provide your services on a commission basis etc.)?

Customer: replied 4 years ago.

Hi Vincent


We provide a training service covering H&S courses. We invoice them at the end of the month.

Customer: replied 4 years ago.

For vincent2013


We offer a selection of Health & Safety training on an ad hoc basis. They usually just email us their requests and we facilitate. We bill them on a monthly basis (30 days) when any training has taken place within the month. The reason for the termination is that's its going to a big player who has recently taken on the HR for the entire company and we don't offer Management training and they want to keep things tidy. They have not been disappointed with our services since 2008 when the contract was won. just feel we need to put up at least a little fight.

Expert:  Vincent2013 replied 4 years ago.

Thanks for the additional information.

 

If the agreement states that your customer is obliged to serve 3 months notice before termination, then it will usually be bound by the remaining contractual obligations during the 3 month notice period.

 

The next thing to consider is precisely what obligations they have and what rights you are entitled to. For instance, if they agreed to use you as their exclusive supplier of H&S courses, they may not be able to use an alternative provider until the end of the three months. Also, if they agreed to purchase a minimum amount of services from you on a monthly basis, they may also still be bound.

 

If it is completely "ad hoc", there are no minimum orders or exclusivity requirements and they are not obliged to make any payments to you unless they choose to use your service, then they may well decide to start with their new provider before your contract terminates. Of course, depending on the terms of your agreement, you are unlikely to be obliged to assist them with their early transition if they do this.

 

Check the contract. Even if they won't be in breach if they start with the new provider before the end of the termination period and there is no economic disadvantage to them in doing so, there may be something that at least makes it adminstratively or practically burdensome for them. This may then provide you with some leverage.

 

I hope that's helpful. If so, please do remember to leave a positive rating so that I can be credited by the website for my time. Our conversation will not end and, if you require any further clarification, don't hesitate to ask.

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