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An Order raised by JXXX may be cancelled at any time by XXX giving the Contractor 14 days’ notice in writing. A fair and reasonable price shall be paid for all work in progress and/or any part of the Services performed up to the end of the notice period which is subsequently received by XXX. XXX shall not be liable for any loss to the Contractor including consequential loss, which arises as a result of XXX’s cancellation of the Services pursuant to this Condition.
OK, two further points:
1. They were given a volume pricing discount because of the total number of days agreed. Could we argue for adding back the discount under this clause in respect of the invoices already raised at the lower rate?
2. Since there appears to be no actual purchase order as such, is there a difference between someone simply placing an order versus what actually happened, which is that the person placed a verbal order, based upon the contract, for work to be done before end November. That person then verbally requested that we reschedule the work to a later time, which we agreed to.
3. Incidentally, the contract is dated specifically with an end date of 30th November, so perhaps we were no longer operating under the contract terms after that date?
Regarding (2), I guess what I am saying is this: is it a different scenario to just 'an order' versus placing an order for services to be delivered in November. Not cancel that order in November, but simply agree that the work will be delayed. So, in a sense, the work has been ordered AND confirmed as happening, and we (kindly) agreed to a delay. So that work was, in some senses, in progress rather than 'just' ordered.
Also, even now there has been no official cancellation in the way that the contract states. We have simply received an email. Might that help?
Thanks and I appreciate we are somewhat clutching at straws and we do want to maintain the relationship if at all possible.
If we say their email cancellation is not valid, would this be breach by them? Or how otherwise might it help?
Could they simply then cancel properly without harming their position?
Finally, under your scenario, could we argue a reasonable cost for planning work, job scheduling, early stage research etc?