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Alex J.
Alex J., Solicitor
Category: Law
Satisfied Customers: 3473
Experience:  Solicitors 2 years plus PQE
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I just want to find out if I'm Liable to pay an invoice. On

Resolved Question:

I just want to find out if I'm Liable to pay an invoice.
On the 17/04/2015 I signed an agreement with Motorhome agent Ltd for the
brokerage of my motorhome. This agreement was on one page, and contains
my details, the details of the motorhome, the return price to myself
(£24000), a specific terms box which is left blank, then there is a
paragraph stating "The agreement is made upon and subject to the terms
and conditions I/We confirm that we are legally entitled to permit the
sale of this motorhome, and hereby acknowledge that we have read an
understood the terms and conditions for the sale of a motorhome by" the agreement is then signed by myself and the agent.
It was explained to me that these terms were the ones on their website
that list the benefits of selling with them, and that there was no fee,
the service was free and if they sold my motorhome they would return the
agreed amount of £24000 to myself and keep any extra they made.
Basically no sale no cost and the motorhome remained on my property till
sold. I was also assured they will be able to sell it in a matter of
weeks. I was not made aware of any cancellation clauses, fees or
penalties. I also made it clear that I was actively trying to sell the
motorhome privately, making it clear that they were not the sole sellers
A few weeks after signing the agreement I contacted them to get a
progress report after not hearing anything from them and was told that
they didn't think they would be able to sell it easily as it was an
unfamiliar Italian make they had never heard of. The next I heard from
them was on the 15/08/2015 saying they had their first viewing, by this
time I had already sold the motorhome, and informed them of this.
A few weeks later I received an invoice in the post dated 03/09/2015
saying I owed them £1949.63 as a cancellation fee. I ignored this
invoice as I was certain it was just a chancer, but I received another
one yesterday stating that if I don't pay they will take legal action.
The company number on the invoice (07955873) is from a company that was
dissolved on 16/06/2015 according to company's house. Whether that was a mistake on their part for putting a previous company number on, I don’t know.
I am I Liable for this invoice? It seems a lot to pay for zero results, especially as I was definitely not aware of any fee of any sort. I have looked for the terms and conditions on their website and can’t see any - the terms and conditions were not made available to me. I was also not made aware of the fact that you needed to give them 2 weeks’ notice after the 90 days had elapsed. On the invoice in the description it states “ Withdrawal of motorhome from sale (as per our terms and conditions) Cancellation during the first 90 days, if the seller fails to complete the transaction and withdraws from this brokerage agreement for any reason a cancellation fee will become due and payable immediately to The cancellation fee will be equivalent to 7.5%or a minimum of £1000. (Maximum of £2500) of the initial advertising price of the leisure asset including VAT.” This was the first I had heard of this.
Your advice in this matter would be very much appreciated.
Kind regard
Richard Grim *********** ***@******.***
Submitted: 1 year ago.
Category: Law
Expert:  Alex J. replied 1 year ago.
Thank you for your question and welcome.
My name is ***** ***** I will assist you.
Do the terms and conditions on their website refer to the cancellation fee?
Kind regards
Customer: replied 1 year ago.

I am unable to find any form of terms and conditions on their website, all I can find are the bullet point they use to promote the service I used. I also can't find any reference to cancellations on their website.

Expert:  Alex J. replied 1 year ago.
Hi, Thank you. I am just going to type some practical advice now, it will take me about 20 minutes but I will post it as soon as possible. Kind regards AJ
Customer: replied 1 year ago.

That will be very helpful AJ Thank you so much.

Expert:  Alex J. replied 1 year ago.
Hi, Thank you. The Law is as follows: If you want someone to be bound by contractual terms then you have notify them of those terms before the contract is made. Accordingly if they referred you to terms and conditions that do not exist, then they cannot just unilaterally impose a cancellation charge on you post formation of the contract. The other point to note is that a dissolved company cannot actually commence court proceedings or even be paid money as it does not exists. What I recommend you do is write to them as follows: (i) Deny that you are liable to pay them any money as they have not provided you with a service; (ii) Say that they have never notified you of any cancellation fee, and by imposing this charge all they are doing is penalising you for terminating the contract. Such penalty fees are not an estimate of their loss and accordingly would be unenforceable in a court. (iii) Say that if they continue to chase you for money you do not owe you reserve the right to deem this harassment under S.40 of the Administration of Justice Act 1970 - which makes it a criminal offence to pursue someone for money they do not owe and you reserve the right to either report the matter to the police or Trading Standards (iv) say that you assume this now brings the matter to a close.
Expert:  Alex J. replied 1 year ago.
If they do actually restore the company and sue you, I believe they may have a claim to cover a small fee for their administration charges, because presumably they have advertised the van and taken photos of it etc? If that is the case, then I would recommend you try and settle with them by offering a nominal sum as a gesture of goodwill. I would avoid letting this go to court at all costs, as it will waste a huge amount of time and expense that you wont be able to recover.
Alex J., Solicitor
Category: Law
Satisfied Customers: 3473
Experience: Solicitors 2 years plus PQE
Alex J. and other Law Specialists are ready to help you
Customer: replied 1 year ago.

That breaks it down very clearly AJ, thank you for your advice.

Have a wonderful day.



Expert:  Alex J. replied 1 year ago.
Hi, No problem. I wish you the best of luck. Please do not hesitate to contact me if I can assist any further. I would be most grateful if you could take a moment to rate my answer. Kind regards AJ
Expert:  Alex J. replied 1 year ago.
Hi, Can I assist you any further? Kind regards AJ

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