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JGM
JGM, Solicitor
Category: Law
Satisfied Customers: 10259
Experience:  30 years as a practising solicitor.
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We are currently in the process of replacing a piece of printing

Resolved Question:

We are currently in the process of replacing a piece of printing machinery and the new supplier is buying out the remainder of the outstanding lease. However this also in place a separate service agreement which the current supplier is enforcing the cancellation clause which they estimate to be £16,500. They refuse to negotiate and demanding payment in full with immediate effect. On reading the agreement the cancellation conditions are stringent and technically will have been breached. However given that the outstanding period of the lease has been fully paid we feel there should, at least, be some room for negotiation both on the total figure and a payment plan. Interestingly the space on the agreement where the term of the agreement should be is blank! Is this significant? This particular machine is our second from this company and when we changed our last machine early there was no penalty for early cancellation of the service agreement so they have a precedent of not enforcing. We believe that they themselves are in serious financial straits and this is why they are being inflexible. Any suggestions would be most useful. Please note that I will be unavailable until about 10 am tomorrow morning by telephone but will be picking up emails for the rest of the day.
Stewart Farmer on Behalf of ***** ***** and Sons Ltd
Submitted: 2 years ago.
Category: Law
Expert:  JGM replied 2 years ago.
Thank you for your question. I am a solicitor in Scotland and will help you with this.
If you could scan and email the whole service agreement to***@******.*** and ask the moderator there to forward it to JGM I will have a look at it for you.
Customer: replied 2 years ago.

Just to check you received the copy of the service agreement? Sent as requested.

Regards

Stewart Farmer

Customer: replied 2 years ago.

Sorry just checking you received service agreement copy sent last night

Regards

Stewart Farmer

Expert:  JGM replied 2 years ago.
I received it earlier today thank you.
If the term of the agreement is blank then the Initial Term is defined as 60 months. If you terminate early you have to pay what they calculate as being what they would have charged for the remainder of the 60 month period.
There is no legal obligation on them to negotiate with you unless they elect to do so. The agreement is watertight. The only possible way to mitigate this is to do your own calculation of why you think might be due under clause 6 of the terms and conditions to see if their estimate of £13500 is correct.
I'm sorry that this is not what you want to hear but that is my understanding of what you have sent me.
JGM, Solicitor
Category: Law
Satisfied Customers: 10259
Experience: 30 years as a practising solicitor.
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