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Ben Jones
Ben Jones, UK Lawyer
Category: Law
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We are a small business and tried to give notice to

Resolved Question:

Hello, we are a small business and tried to give notice to terminate a contract with a service provider . They then told us it's to late as there was an automicatic roll over for 12 months as we didn't give them a months notice before the end date of the existing contract.
The end date is 10 October. We gave notice 28 September to action a 30 day period.
I was not aware of this term, it wasn't specifically pointed out at time of signing, although it is in the contract .
It seems unreasonable and unfair for them to strong arm an additional 12 months that we cannot afford.
Submitted: 11 months ago.
Category: Law
Customer: replied 11 months ago.
I believe ofcom has banned this for utilities as it's typically unfair . We are all busy in our small business , running the business and can't keep and eye on these dates ( didn't know I had to as mentioned this was not specifically pointed out ).
We didn't get any notice of the forthcoming renewal.They say they will keep billing . They are a business that offer a web mail blast service
Expert:  Ben Jones replied 11 months ago.

Hello, my name is***** am a qualified lawyer and I will be assisting you with your question today.

Expert:  Ben Jones replied 11 months ago.

What is the contract for?

Expert:  Ben Jones replied 11 months ago.

Hi there. Such terms, known as rolling contracts, are subject to common misunderstanding so I will try and clear up a few things for you. Whilst you are correct that they have been banned in certain utility contracts, this only applies to consumer contracts. You are not a consumer – this is a business to business contract so you will not be protected by this. As a business you are expected to know what you are sign up to and to be able to read a contract and be sufficiently informed about its terms. There is no protection in the same way as consumers get for example against unfair contract terms. Before you sign up for a business to business contract you would be expected to read the terms you are signing up to and be satisfied that you are happy to accept them. Sadly an argument that you are too busy in the business is not going to be accepted in a court of law.

So this term is legal and is enforceable if it was included in the original contract you signed, even if it was not brought specifically to your attention. Whilst they cannot force you to honour the contract, they can pursue you for losses incurred as a result of your alleged breach. This is where another misconception often occurs because the company may think they can pursue you for the costs you would have had to pay them to continue the services for another year. However, they can only pursue you for the losses, which are not the fees you would have paid but the cost of the service to you, so they will need to deduct all overheads, ancillary costs, etc and the overall losses will be much less than the total fees you would have had to pay. All of this also depends on whether they will g as tar as court t pursue you for breach of contract because the only way they can force you to pay them is if they go to court and win there is of course no guarantee that they will go that far or be successful if they do.

I'm sorry if this is not necessarily the answer you were hoping for, however I do have a duty to be honest and explain the law as it actually stands. This does mean delivering bad news from time to time. I hope you understand and would be happy to provide any further clarification if needed. If you are still satisfied with the level of service you have received I would be grateful if you could please take a second to leave a positive rating by selecting 3, 4 or 5 starts at the top of the page. Thank you

Expert:  Ben Jones replied 11 months ago.

Hello, I see you have read my response to your query. If this has answered your question please take a second to leave a positive rating by selecting 3, 4 or 5 stars from the top of the page. I spend a lot of time and effort answering individual queries and I am not credited for my time until you leave your rating. If you still need further help please get back to me on here and I will assist as best as I can. Many thanks.

Expert:  Ben Jones replied 11 months ago.

Hello, do you need any further assistance or are you happy with the above response? Look forward to hearing from you.

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