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Ash
Ash, Solicitor
Category: Law
Satisfied Customers: 10915
Experience:  Solicitor with 5+ years experience
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I run a &. Back in June I did a deal with a company to take

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I run a b&b. Back in June I did a deal with a company to take all of our rooms (5 rooms) on an ongoing basis but for a minimum of 6 months. This commenced on 22 June 2015. I received a call today from one of their company directors informing me that as of today they no longer require the accommodation and that he needs to terminate our agreement as quickly as possible.
I really need some advice as regards ***** ***** of my contract with the company. Can I simply charge them for the full 6 month period minus the time they have already stayed. If so can I invoice them for it in full now or continue to invoice weekly? If so do I have to keep the rooms available for them or can I rent them out again?
Submitted: 1 year ago.
Category: Law
Expert:  Ash replied 1 year ago.
Hello my name is ***** ***** IU will help you.
Was anything signed?
Customer: replied 1 year ago.
The agreement is evidenced by the following email exchange:
Hi Tony
Thanks for your email and payment. I believe Mariola has now sent you the invoice as requested.
It was good to meet you the other day and to hear a little of your plans. I'm glad to say that the guys seem to be settling in well. Please do keep us informed about arrivals any changes.
As regards ***** ***** guests we can currently accommodate up to 12 guests and I'm happy to consider providing caravan space should that be required.
Finally, yes we can do a deal at 2 weeks notice after the initial 6 month minimum stay.
Thank you for choosing Colthrop Manor and if we can be of any further assistance please give us a call.
Yours sincerely
Craig Nottage
Craig - 07738 017356
Mariola - 07539 049048
Sent from my iPad
On 19 Jun 2015, at 11:50, Tony Pope wrote:
Craig
Thanks for this I will transfer the £1500 now to the account
Could we do a deal on the notice period for 2 weeks, Our contract will run for the next 5 years but should we have to change anything I am only going to get little notice from the client. I am hoping that through this period together, we will keep you well informed of how the contract is working and what if any changes are going to happen - such as change of workers etc
Please can we have an invoice on a weekly basis for the transfer so our accountant is kept up to date
Will this be ok
Cheers *****
Company Director
Traffic Safety Officer Services Ltd,
12a, Westpoint Enterprise Park,
Clarence Avenue
Trafford Park,
Manchester,
M17 1QS.
Mobile: 0771(###) ###-####
Office: 0161(###) ###-####
Fax: 0161(###) ###-####
mailto***@******.***
www.tsoservices.uk.com
TRAFFIC OPERATIVE AND SHIFT TRACKING System.
-----Original Message-----
From: Craig [mailto***@******.***]
Sent: 17 June 2015 17:13
To:***@******.***
Subject: Colthrop Manor Booking Confirmation
Dear *****
Further to our telephone conversation I hereby confirm our agreement as follows:
We, Colthrop Manor B&B, shall provide you with B&B accommodation for 10 persons at the negotiated rate of £1500 per week (£25 per person) on an on going basis (minimum 6 months).
This arrangement may be cancelled by either party on giving one months notice.
N.B. The above calculation takes into account the work shift patterns of 12 days on, 2 days off.
Payment is requested by bank transfer to:
Bank: Natwest
Account name: Colthrop Manor Limited
Sort Code: 60 24 77
Account Number: 28248996
Thank you for your booking and we look forward to welcoming your guys on Monday 22nd June.
Yours sincerely
Craig Nottage
Colthrop Manor
07738 017356
Sent from my iPad
Expert:  Ash replied 1 year ago.
You can rent them out but you can't charge them at the same time. You can only claim for one rent. You must be active, you cant' just leave it and think oh well I will get the money from them.
You need to minimise your loss. So you can invoice weekly if that is what you did before and any days you havent been able to let out.
Can I clarify anything for you about this today please?
Alex
Customer: replied 1 year ago.
Hmmm....not what I was expecting?
As I understood things I had a contract for a minimum of 6 months. It was on this basis that it was viable for us to change around the layout of the house and buy the furniture required to accommodate the company's requirements. We also had to cancel our all existing forward bookings, some of which we had to find alternative accommodation for at our own expense!
We were only prepared to do this due to the long term nature of the contract.
Would you please advise as to what I can expect to hold them liable for under the circumstances?
Expert:  Ash replied 1 year ago.
Only the rental term and indeed then only if you cant fill the rooms.
Does that clarify?
Alex
Customer: replied 1 year ago.
No sorry I don't understand!
The rental term was 'minimum 6 months' - is that not clear from the documentation?
Also Expenses were incurred to facilitate the contract based on its minimum 6 month value.
Perhaps a negotiated settlement is what we should be looking to achieve. They have contracted for a further 4 months / £26000 we settle at 2 months notice £13,000?
Or alternatively, what you seem to be suggesting, a 'top up' weekly claim. Contracted income £1500 per week - actual income - commissions paid (commissions to laterooms and booking.com) = weekly £ claim
I feel from your responses that my agreement is worthless despite the fact that the agreement is evidenced by exchange of emails.
Do I have a good claim? Do I have an enforceable contract?
If I contact for a service for 6 months and then change my mind am I not liable?
Expert:  Ash replied 1 year ago.
Was it agreed that they would pay for the changes?
Customer: replied 1 year ago.
No, it was agreed that we would make the changes to accommodate their needs provided that it was a long term arrangement - we stated that we needed a minimum of 6 months.
In straight terms given the evidence of the email exchange do I have an enforceable contract?
Expert:  Ash replied 1 year ago.
Ok, that is fine. But you can only ever charge 6 months rent, not the cost of doing changes, UNLESS that was agreed and it does not appear it was.
So at most its 6 months rent per room. That is because you would have had that cost anyway. But if you can relet those rooms, the cost of that relet must come off what you would charge them.
Does that make sense?
Alex
Customer: replied 1 year ago.
ok, thanks. That's fine.The deal was 6 months minimum so if we could get that we would be very happy, the deal increased our occupancy to 100% and increased our profitably by 50%.So now the question remains how to we get them to honour these payments?Are we looking at the weekly claim scenario then? And if necessary issue a weekly small court claim!
Expert:  Ash replied 1 year ago.
No, you wait until the end of the 6 months then do a claim. You invoice weekly if that was the agreement.
Does that clarify?
Alex
Customer: replied 1 year ago.
Thanks for all you help. Just one final but of clarification. It appears that the company does not intend to honour the agreement, as they have failed to make payment for this week.
So how should I proceed? Should I write to them reminding them that they contracted for a minimum period of 6 months, telling them that we will seek to resell the rooms but will be holding them liable for any shortfall against the the contract rate of £1500 per week.
Is that correct?
also what would be the best way to account for this? I'm thinking that we should invoice them in full in advance (as we have todate) then issue a credit note at the Nr of the week for rooms resold. Does that seems sensible?
Expert:  Ash replied 1 year ago.
Yes you can do that.
Does that he,p?
Alex
Customer: replied 1 year ago.
Ok, thanks for that.
My real concern however is that it's all well and good me invoicing them for the next 4 months but if they don't pay then what do I do?
After 4 months this is likely to be a substancial amount, probably in excess of £10,000 n.b. We canceled all our forward bookings, took down our web site and removed our online booking listings in reliance upon this contract which was accept on the basis of being Upton 5 years but for a minimum of 6 months.
Basically I guess I need to know, do I have a strong case if I have to take this matter to court?
And if you were advising the other side what would you advise them to do? Pay / don't pay / negotiate a lump sum cash settlement / wait to be sued for the shortfall?
What is their maximum liability?
Sorry, I feel I'm going round in circles with this. The company are not returning my calls and haven't paid and I don't feel comfortable leaving this for for another 4 months without taking action!
Should I inform them that I have taken Legal advice and detail exactly what I will be doing?
Expert:  Ash replied 1 year ago.
If they dont pay then you have a good case to take to Court yes.
I think you have a good case. Their maximum liability is the 6 months per room/
Does that clarify?
Alex
Customer: replied 1 year ago.
Yes, thank you very much. If I have a good case I'm happy.
I will simply email them setting out what I intend to do. If they do not respond I simply create the paper trails (invoices and credits) and issue proceedings at end of the term.
What would you advise them todo if they asked your advice on the matter?
Expert:  Ash replied 1 year ago.
I would advise them to pay up.
Alex
Ash, Solicitor
Category: Law
Satisfied Customers: 10915
Experience: Solicitor with 5+ years experience
Ash and other Law Specialists are ready to help you
Customer: replied 1 year ago.
Excellent news. Thank you very much for your help.
I was getting worried that I might not have a very strong case:-)
Expert:  Ash replied 1 year ago.
Hi
I am just following up to see if there is anything else I can help with?
If you have not done so already might I ask you to rate my answer before you go today please, the button should be at the bottom of the screen.
If you need more help please click reply.
Alex
Customer: replied 1 year ago.

Hi Alex

I hope you had a good xmas and new year.

I'm back to the above subject again. As suspected / feared the company refused to pay up so i now need to proceed with legal action and thus i'm seeking further advice from you to ensure I get it right

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