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Alex J.
Alex J., Solicitor
Category: Law
Satisfied Customers: 3695
Experience:  Solicitors 2 years plus PQE
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I signed a sales contract in Jan after being taken in by hard

Resolved Question:

I signed a sales contract in Jan after being taken in by hard sell tactics by a business.
The contract is for one year and I have paid 50% of the fee to the business.
Even though I now only owe a relatively small amount I am considering taking a calculated risk and not paying the remaining owed - it is my gut instinct the the business won't sue me given the cost's involved, the nature of their business and their bad reputation.
If they did decide to sue me how does the process work? At the point it was escalated to the courts could I settle to avoid a possible judgement against me?
Submitted: 3 years ago.
Category: Law
Expert:  Alex J. replied 3 years ago.
Hi

Thank you for your question and welcome.

My name is XXXXX XXXXX I will assist you.

You will know they are about to issue proceedings because they will issue a 7 day letter before action as they are required to do under the Civil Procedure Rules.

Under CPR 1 parties are constantly obligated to try and settle the claim. You can therefore settle anytime but if they issue proceedings they likely won't settle unless you pay some of the cost they incur as well.

I look forward to hearing from you.

Kind regards

AJ
Customer: replied 3 years ago.

Ok - thanks.


Surely though, if they issue a 7 day notice of intent of court action, as it is just from the business, this cld be a bluff in the hope that I would give in and pay?. If they did send such a notice with the true intent to take me to court, what would be the next communication I would receive? From the court?

Expert:  Alex J. replied 3 years ago.
Hi

Thank you.

Yes it could be a bluff but it is the first step you must take in accordance with the CPR.

If they were actually going to sue you, you would receive a claim form N1 stamped by the court (must be stamped by the court otherwise it is not an issued claim) to which you will have to response normally within up to 28 days.
Kind regards

AJ
Customer: replied 3 years ago.

Thank you.


 


Just one more thing. The remainder owing is due to be paid by two monthly instalments. If I refuse to pay then am I correct in thinking that the total amount then becomes payable? How long would I be given to pay this?

Expert:  Alex J. replied 3 years ago.
Hi

Thank you.

The total amount will only become due and owing if there is a clause in your contract that says any default will lead to all monies due.

If the money becomes due and owing technically you won't be given any time it will be due on demand. Potentially if the sum owed is not in dispute they may serve you with a statutory demand which is a 21 day demand for payment. Failure to comply with it and they could then petition for your bankruptcy.

Kind regards

AJ
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