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Ask Leon Your Own Question
Leon, Solicitor
Category: Australia Law
Satisfied Customers: 45868
Experience:  24 years experience. Admitted in New South Wales and the UK.
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Two years ago I became an Exclusive UK distributor

Customer Question

Good afternoon
Two years ago I became an Exclusive UK distributor for an Australian tanning company, and was given an agreement which neither of us signed but I believe once business has taken place makes the agreement effective. The agreement was for 2 years and was up on 01.04.16, but within the agreement as long as all criteria had been met then it should automatically be extended for a further 12 months.
However they have a change of management and I have been sent a new contract which is totally unworkable and unfair. I took the original contract as Exclusive UK distributor, she now wants me to be England distributor taking off me Northern Ireland, Scotland and Wales. This new contract is full of objectives that cannot be met as there is no limit on them. Therefore they can take this from me at any time.
I have invested into this business £50,000.00 getting the brand well known in the UK and also throughout Europe, but with this new contract I have no way of getting my investment back due to them reducing my territory and my exclusivity.
In the first contract is says under NZ and Australian Law, the second contract is under NSW Law. She is refusing to even talk about the first contract am I right in thinking that this is a breech of contract? is there anything that I can do about this situation?
Look forward to your reply
Kind regards
Sarah Jane Riley
Submitted: 1 year ago.
Category: Australia Law
Expert:  Leon replied 1 year ago.

Good Morning.

My name is ***** ***** I am a NSW Solicitor. Thank you for your question, and will do my best to assist you with your question. Please understand this is not legal advise Please understand this is not legal advise but a guide to assist you.

Unless you agree to it cannot be enforced.

Because you have not signed the first does not mean you do not have an agreement. If you were working under the first and payments and other terms and conditions were being met by both parties then you can argue agreement by acquiescence.

You need to advise them that you do not agree with the new terms and will not sign it and that you rely on the original agreement you have been working with.

Set out what you will be losing if you agree to the new contract.

But make sure this is all in writing.

If they make the changes then you will need to hire a new solicitor in Australia to support you and seek and injunction against them implementing the changes.

The agreement is over but it does not mean it is non existent you have continued on it and until you both agree to change it it remains on foot.

I hope this makes sense and is of assistance. if there is nothing further

thank you for using my services.

If I have missed anything, or you have any further questions please let me know

If there is anything else in the future please do not hesitate to ask.

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