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What is the contract for?
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.
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