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Ash, Solicitor
Category: Law
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Experience:  Solicitor with 5+ years experience
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CONTRACT LAW QUESTION I have a customer, who I think may

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I have a customer, who I think may be going insolvent, who is refusing to pay my outstanding in full. I want to pull the contract today, but have an employee in place and my employment law experts (Peninsula Biz Service) say I cannot just pull the contract.
I have a signed copy of contract, here are relevant clauses
Invoices are submitted at the beginning of each calendar month. The Client will pay the Price for the Goods within 30 days or face a late payment charge. The only discounts will be those shown in the Quotation, irrespective of previous course of dealing between the parties. The Client is not entitled to make any discount or withhold payment or exercise any rights to a set-off.
The Company reserves the right to terminate the Contract without liability to the Client with immediate effect if the buyer fails to pay for the Goods and/or Services on the due date or the Company has reasonable grounds to doubt the solvency of the Client. Other circumstances in which this applies if the Client goes into administration or liquidation, or enters into any arrangement with its creditors or the Client ceases to carry on business, either fully or in part.
My other option may be to suspend services pending payment as employee is on a/l all week. However would client be liable to pay during this suspension period?
Client is offering to pay in part. He had a cover cleaner last week who spoke poor English (she is an excellent cleaner) and is stating it took his bar staff hours to show her what to do.
On Monday I sent one of my most experienced cleaners to cover. However she used one of the customers mops which was somewhat smelly. He is now claiming loss of trade as he claims he could not open the bar at 11 am as he normally does. He is also stating after my cleaner left (who did 1 hour unpaid overtime to sort the problem out) he had to get his bar staff to clean the premises again. I trust my cleaner and she states bar was opened at 11 am and when she left at 1230 pm there was no issue and so I do not believe his bar staff had to reclean the premises. He is just trying it on basically and wanting to invoice me for loss of trade and wages for his bar staff repeating the cleaning.
Customer: replied less than 1 hour ago.
The foreign cover cleaner arrived at 930 am and he spoke to me at 1030 am saying he was not happy. Rather then sending my lady home he got her to clean the bar for 2 hours and now wants a refund for this and expenses of his staff showing her what to do. I have worked with the foreign lady before. Although her English is poor, all I have to do is just point her to the cleaning cupboard, which contains vacuum, mop etc and she just gets on with the job. She is very experienced and a good cleaner.
Alex Watts : Hello my name is ***** ***** I will help you with this.
Alex Watts : I think you can terminate the contract with immediate effect.
Alex Watts : Howevr I think you will have continuing obligations to the employee during any notice period.
Alex Watts : But based in the terms and what you have said, you can pull the contract with immediate effect.
Alex Watts : can I clairfy anything for you about this today pkease?

the situation is pete, my cleaner is on annual leave this week.


I want to get my stuff today and take my property home


peninsula are saying wait until pete the cleaner is back on monday and then start the tupe process

Alex Watts : Yes you can do that if you terminate the contract.
Alex Watts : the fact you have not been paid and you suspect they are going insolvent is enough

it is likely the customer will take pete on as an in house employee

Alex Watts : I don't know that would be impossible for me to say
Alex Watts : But what I can say is that you have ground to terminate

so do I just pitch up at the bar this afternoon and collect my kit eg mops vacuum

Alex Watts : yes you can do that, there is nothing stopping you

but what happens to pete? I can go in Monday and chat with him about TUPE but peninsula are saying he needs 14 days notice of transfer

Alex Watts : Can I clairfy anything for you about this today please?

yes I am v confused!

Alex Watts : i can only hell you with a contract law queation, I am not an employment specialist
Alex Watts : I can help you in terms your contract with the customer

I know it is very complicated. Peninsula are excellent with employment law, and I want to get my kit today, but what happens to pete? Do I continue paying his wage?

Alex Watts : You would have to during any notice period. After all it's not Pete's fault.
Alex Watts : But you can go in and end the contract, which is the aspect I can help with
Alex Watts : Does that help?

I feel sorry for Pete, he is a lovely chap and I would be happy to pay his notice pay and I think the client will want to take him on as an in house employee which would be great for him


I think what I need to do today is 1. collect my kit 2. contact pete and invite him to a TUPE meeting. In the interim it is only fair that pete gets paid for his services and continues to be paid a/l.

Alex Watts : Yes I would agree.
Alex Watts : Can I clairfy anything else for you?

right I will go get my kit and invite pete to a meeting on monday.

Alex Watts : ok.

I think you have clarified it. It is a complex situation as I want to correctly follow -=


contract and employment law

Alex Watts : Inded. Bearing in mind I can only help with contract law, not employment matters

I know, it is a tough one thanks

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