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Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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I have a draft busines to business contract that has not been

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I have a draft busines to business contract that has not been signed but has been in place unchallenged since 2011. It has been paid for 2 years and one term now kicks in from mid 2013. The term is being challenged. What rights do I have?

Alex Watts : Hello my name is XXXXX XXXXX I will help you with this. Please note that I am a working Solicitor and may be on and offline as I have to attend Court and meet with clients, even at weekends. As such you may not get an instant response when you reply, but rest assured I will be giving your question my immediate attention upon return You do not need to wait here as you will get an email when I reply.
Alex Watts : Why was it never signed please? What is the document for?

The contract is a services and sales generation contract. services provided by me at a significantly reduced rate with a defered sales related fee. My services are among other things to appoint distributers and the draft contract links to a 15% of sales generated fee. The service fee has been paid for around 2 years and now the sales fee is for the first time due and is being challenged

Alex Watts : It's bad news I am afraid.
Alex Watts : A contract is only binding if it is agreed by both parties.
Alex Watts : Here you have a contract only signed by one party and not another,
Alex Watts : This means that the parties are not bound by the terms,
Alex Watts : It may be that by their conduct they have abided by it, but it is not signed.
Alex Watts : Therefore if it is not signed the parties to not have to abide by the terms,
Alex Watts : Here one party is reliant on a particular clause .
Alex Watts : That clause is being challenged,
Alex Watts : Because it is being challenged and it has not been signed it is not binding on the parties.
Alex Watts : In short no agreement or no signed contract means it can not be relied upon.
Alex Watts : If the sales fee had been paid previously you would have been able to argue conduct and previous history.
Alex Watts : But it had not been paid before which causes difficulty.

OK -they have agreed in principle with the sales commisions by email. ie they have tried to renegotiate to a smaller fee - does this mean they accept the principle or does it still need the signature?

Alex Watts : It needs evidence of agreement. So oral, written or conduct. I can not see you have any of this from what you have said to me.

Sorry, we had oral at the start in full, written and not refuted but worked to for 2 years, partial conduct in that they wanted to remove 1 region from the discussions and add in new regios - this from their side not mine

Alex Watts : If you have evidence of oral contract you could sue for breach of contract.
Alex Watts : You need to write and set out your losses and request a refund within 14 days or say you will go to Court within 14 days. You should make sure you send this signed delivery and keep a copy.
Alex Watts : If they do not refund you then you can issue proceedings in the County Court. You can either do this online at: or by completing form N1 and take it to your local County Court.
Alex Watts : The Court will then issue a claim which a copy will be sent to the Defendant who will have a limited time to defend it, if not you can enter Judgment and enforce.
Alex Watts : If the matter is defended it will be set down for a trial. If the claim is for £10,000 or less it will be a small claim and you will not need representation.
Alex Watts : Can I clarify anything?

Thanks Alex - I'll let you know

Alex Watts :

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