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Ben Jones
Ben Jones, UK Lawyer
Category: Law
Satisfied Customers: 48193
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I own a limited company and we have an IT services supplier

Resolved Question:

Hi, I own a limited company and we have an IT services supplier stating they "under-invoiced" me in September last year (nearly a year ago) and have sent me the invoice. Can you tell me if this is legal as it was an error on their part not ours and I believe as so much time has elapsed and the fact we paid the original invoice on time that we should not be liable for the "extra". Many thanks in advance - Neil Ward - Just Sport UK Ltd.
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.

Have they contacted you before this regarding the oustanding amount?

Customer: replied 1 year ago.
Hi, no thay have not. This has only been mentioned yesterday because we raised a query on our latest invoice.
Expert:  Ben Jones replied 1 year ago.

OK thank you. Please can you also tell me whether they had provided you with a quote at the start of the job? Please then leave it with me. I am in court today so will prepare my advice during the day and get back to you at the earliest opportunity. There is no need to wait here as you will receive an email when I have responded. Thank you.

Customer: replied 1 year ago.
they provided us with terms that once our turnover exceeds a threshold (£800,000.00) they will invoice 1.2% on all sales over the amount.
On the most recent invoice we exceeded this but they charged 1.2% for the whole of our July turnover (£271,457.67) instead of the amount we went over the £800,00.00 threshold which was £38,942.52. When we pointed this out, they apologised and altered accordingly but they also said that on last years by applying the same logic we owe them this extra amount!
Expert:  Ben Jones replied 1 year ago.

OK thank you. Please do leave it with me and I will get back to you at the earliest opportunity. Many thanks.

Expert:  Ben Jones replied 1 year ago.

Many thanks for your patience. Just because an invoice was issued and it was paid by you in good faith does not mean that you are now absolved of all liabilities in relation to that work and cannot be held liable for any underpayments. An invoice is just a request for payment as a result of a contractual agreement. If the wrong amount is invoiced and paid by you, it does not overrule the overall contractual obligations you have, unless you had separately agreed for any changes, which were then followed up by an invoice to reflect this agreement. However, if the invoice was issued in error, even if it was paid in good faith, the other party can pursue you for the outstanding amount which they are due as per the formal contractual agreement you have with them. The time elapsed is not an issue either because under law they have 6 years in which to make a claim for this, therefore they can still issue a claim against yu if no resolution has been reached and they can show that under contract you should have paid them this amount they are now claiming.

This is your basic legal position. I have more detailed advice for you in terms of the options you have on taking this further from here, which I wish to discuss so please take a second to leave a positive rating for the service so far (by selecting 3, 4 or 5 stars) and I can continue with that and answer any further questions you may have. Don’t worry, there is no extra cost and leaving a rating will not close the question and we can continue this discussion. Thank you

Customer: replied 1 year ago.
Ok many thanks for your advice.
Expert:  Ben Jones replied 1 year ago.

Ok you are welcome

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