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Ash
Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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If a supplier cancels a contract and issues invoices for the

Customer Question

If a supplier cancels a contract and issues invoices for the remaining period on their term without receiving from the customer a termination letter or acceptance to receiving these termination invoices can the customer still be legally responsible?
Submitted: 3 years ago.
Category: Law
Expert:  Ash replied 3 years ago.

Alex Watts :

Hello my name is Alex and I will help you with this. Please note that I am a working Solicitor and may be on and offline as I have to attend Court and meet with clients, even at weekends. As such you may not get an instant response when you reply as this is not an ‘on demand’ live service, but rest assured I will be giving your question my immediate attention upon return. There is no need to wait here, you will get an email when I reply.

Alex Watts :

Why did they cancel the contract please?

JACUSTOMER-vskvr167- :

They say due to the time lapse between the meeting and a decision being made to whether we would continue or terminate the contract, they felt we had enough time. The contract is from a purchasing company called Auditel, the customer involved is a school who entered into a contract for 3 years to help reduce the costs, it was felt the school was not really getting value and could obtain the goods cheaper elsewhere, also the school had problems with a supplier Auditel put them to in order to save money, a meeting was held about terminating the contract but the head teacher was told that if this was the case they would invoice the loss of earnings over the duration of the contract, by issuing 3 invoices which was not accepted ,all this had to been feed up the chain to the Governing Body of the School and they say because of the delay they invoiced the a third of costs, which was disputed and came as a surprise as no decision was made, lots of emails went back and forth, they did not chase the invoice (this goes back I would say 5 months) and then last month invoiced the second invoice, which was disputed as they were told that the contract had not been terminated nor had the invoices been accepted They are now chasing both invoices with another one due next month, they are not in receipt of any letter or email accepting these invoices (only disputing them) nor terminating the contract. The file has been passed over to me to view and to respond to Auditel, I have asked for the letters, but they are referring me to the meeting held with the Head Teacher, they are now trying to back track by saying they will continue with the contract but the bottom line is the school does not, but at the same time does not want to pay any exit charges, so how do we stand?

Alex Watts :

The customer is not liable.

Alex Watts :

This is because if the supplier terminates the contract they can not bill for the remaining period unless the contract allows otherwise.

Alex Watts :

Ordinarily the supplier would bill in accordance with the contract. If the supplier has ended it, they waive the right to levy further charges and supply as per the contract

Alex Watts :

So no - they can not terminate and charge.

Alex Watts :

Can I clarify for you about this today please?

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