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Ash
Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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We produce paintings and offered a company in october last

Resolved Question:

We produce paintings and offered a company in october last year a license to reproduce the images. They didnt pay royalties or give sales details ( even though they confirmed an order in october ) Mid january we telephoned and said that if we didnt get payment ( which kept being promised ) we would terminate the contract. After 5 days we sent termination letter after emailing. The company are still advertising our images on their product and when I phoned to ask for them to stop selling they said we were in breach of contract for not giving enough notice. The license agreement doesnt have any clauses for termination except that if they do not pay or give sales figures we an terminate. The company say they will ask a solicitor about comensation for lost orders ( even though they said the sales we small and no future orders were present at the time just before we terminated. where do we stand ? thanks
Submitted: 2 years ago.
Category: Law
Expert:  Ash replied 2 years ago.
Alex Watts : Hello my name is ***** ***** I will help you with this.
Alex Watts : For now please let me know how much they owe?
Customer:

It was only around £300 but we are not interested in getting the money just terminating the license as we have now given exclusive license to another company.

Customer:

We just need them to stop advertising the product with our images , there are only two on the website they are using but the other comapny are insisting we sort it out and get the first company to remove these.

Customer:

We just need confirmation that we havent done anything wrong by terminating their contract.

Alex Watts :

You need to write and ask them to stop or say you will go to Court. If you have already done this then you can avoid that step.

Alex Watts :

To issue proceedings then you need to complete forms N1

Alex Watts :

http://hmctsformfinder.justice.gov.uk/courtfinder/forms/n001-eng.pdf

Alex Watts :

And form N16a

Alex Watts :

http://hmctsformfinder.justice.gov.uk/courtfinder/forms/n016a-eng.pdf

Alex Watts :

The Court will then send a copy to the Defendant and the matter will be listed for a short hearing.

Alex Watts :

At this the Judge will see if the matter is going to be fought. If so the Judge will give directions for trial and decide whether to make an interim order.

Alex Watts :

If any Judges order to stop them using this is disobeyed then it would be contempt of Court. They could be warned, fined or sent to prison

Alex Watts :

You should get a lawyer for the hearings and if you win you can claim those costs back

Alex Watts :

Can I clarify anything for you about this today please?

Customer:

What I need clarifying is that if you have a contract that says monthly payments and sales figures to be given and they dont and after 3 months still no payment or sales figures , are we in our rights to cancel the contract withou warning. the company says we are not .. even though we asked many times and a week before gave a deadline of when payment was to be received.. thanks

Alex Watts :

Yes this is a clear breach.

Alex Watts :

The whole point of the contract is that they provide sales figures and payment.

Alex Watts :

Does that help?

Customer:

yes that is fine.. they worried us as they threw the solicitor word around alot..

Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience: Solicitor with 5+ years experience
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