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Senior Partner
Senior Partner, Solicitor
Category: Law
Satisfied Customers: 13323
Experience:  Solicitor with more than 30 years experience
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My partner and I have recently started a retail business.

Customer Question

My partner and I have recently started a retail business. approx 6 weeks ago someone running an advertising business cold called and persuaded my partner to sign up for 2 years plus a deposit, to display ads for our shop. This entailed a initial sum of £370. plus monthly payments. We haven't heard from these people - although an inaccurate ad has been in action. We have written to this company saying we want to cancel the agreement - although we realize we will lose our deposit. There was no cooling off period. very little communication.

Having written to the company saying we have cancelled our direct debit to them as well as cancelling the order they have ignored this and say we will just go into areas.
The shop is not showing a profit - we might have to stop trading - what happens to this debt? The person who sold it to us was quite aggressively cold calling and sadly for us - my partner went along with it.
Submitted: 3 years ago.
Category: Law
Expert:  Senior Partner replied 3 years ago.
Hi Thanks for your question. There is a lot of this type of thing around I am afraid. Is your shop a company of a partnership. Did your partner sign personally ?

If you sign a two year agreement as a business then there are no cooling of or cancellation provisions implied by law . If they made misrepresentations then you can cancel for misrepresentation and if their work is inadequate you can cancel for breach but they could in theory sue you for non payment .

If you did not say do in the cancellation letter then I would write again saying they have not provided the service promised or represented by their salesman and you are not paying them and you want your deposit back.

If the contract was in the firm name you can always tell them later that the business has ceased trading but again in theory if the business is a partnership you can be personally liable for the debt.

Please come back with any further questions

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