Ask a Law Question, Get an Answer ASAP!
hello I wrote a commercial contract in 2011 that states a start date (01 June 2011 to 31 May 2012) and an end date but there is a termination clause that says the following: This contract will run for a minimum period of 12 months. If cancelled prior to this period expiring penalty charges up to the expiry of the 12 month period will be liable. Either party can terminate this contract at any time after the first 12 months for any reason giving 3 months written notice. During this time CCCL will continue providing the service until the termination date is reached. Stupidly (because I was busy) I let the contract lapse and sent a new contract in July 2014 reducing the prices (as the textile recycling market has crashed completely) but the client states that the old contract is a rolling contract and we have no right to change the rates without giving 3 months notice and have to stick with the out of date rates which are crucifying us and not the going rate for the material as per industry indices. Is the client correct or can we reduce the prices. I have a meeting with the client at 2pm so any advice would be really helpful. Kindest Regards ***** ***** Chris Carey's Collections 07921 587 477
What I want to do is reduce the price of the material we are collecting to the market rate instead of the over inflated rate. I wrote to them in July 2014 reducing the prices (contract prices expired on 31 May 2012) and they say I have to give them 3 months notice to reduce the price but I thought this was to terminate.
I would agree to 14 days notice (30 days if I have to) but the situation is really bad and we still have £72,000 of payments outstanding to the client for material that only has a value of £50,000
this is a market value by the way from an industry index called letsrecycle