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Ben Jones
Ben Jones, UK Lawyer
Category: Law
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We are a business with 27 employees, are telephone contracts

Resolved Question:

We are a business with 27 employees, are telephone contracts allowed to roll automaticaly?
Submitted: 1 year ago.
Category: Law
Expert:  Ben Jones replied 1 year ago.

Hello, my name is***** am a qualified lawyer and it is my pleasure to assist you with your question today.

Expert:  Ben Jones replied 1 year ago.

Please can you provide me with a brief background on the issue you are having in relation to your employees' telephone contracts?

Expert:  Ben Jones replied 1 year ago.

Hi there. Thank you for your request for a phone call. I am unable to talk at the moment but if you provide the information requested, I will review the relevant information and laws and get back to you as soon as I can. Please do not respond to this message after you have provided the information as it will just push your question to the back of the queue and you may experience unnecessary delays. Thank you

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Customer: replied 1 year ago.
We cancelled our telephone contract with a company called Chess but because our new contract with BT did not transfer in time Chess have automaticaly renewed the contract and are no charging us £2401.33 termination fees.
Expert:  Ben Jones replied 1 year ago.

As a business customer you will not be subject to the usual consumer laws and protection that individuals get, such as unfair contract terms. It is assumed that as a business you are well informed and able to read a contract given to you, including the small print. The law prohibiting automatic rolling contracts is specifically aimed at consumers, meaning someone not dealing in the course of a business. Therefore, you will be bound by this clause and failure to follow it will potentially place you in breach of contract. So if you renege on the contract they could pursue you legally for damages. However, they are not entitled to the full amount of their service until the end of the contract. They are entitled to compensation/damages which is their loss of profit. So it would be the actual profit they may have made, not the direct cost of services to you. This will be much less than the fees you would have had to pay for the full new term. You can try and cancel the contract and send them a cheque or payment and tell them it is in full and final settlement of the fees you would owe them and if they cash or accept that payment then you can argue that they cannot claim further against you. At least try that, you have nothing to lose. I they reject that and wish to continue pursuing you there is nothing stopping them from doing so and even going to court. However, they would have to justify that hat they are after is fair and reasonable and as mentioned that will almost certainly be a much reduced amount than what they are currently after.