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Jenny, Solicitor
Category: Law
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Experience:  Qualified Solicitor specialising in Employment Law and general legal matters. Please start your question For Jenny Only
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I am contracted by my own LTD company to another company. The

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I am contracted by my own LTD company to another company. The contract has a 4 month notice period. I would like to cancel this contract, and wonder is succession of late payments (when the contract states payment in advance) likely to be sufficent reason under english law?
Hello my name is ***** ***** I am happy to help you today. What is the contract for?
Customer: replied 2 years ago.

I provide web development services through my Ltd company. The contract states a rolling 4 month notice period, with payment in 10day/2 week blocks in advance.

From memory they have been late 4 times in the last 3 months, this time by a couple of days (and counting) and I wonder is it acceptable to therefore 'void' the contract (or whatever the terminology would be).

Have you discussed your concerns about their late payments with them?
Customer: replied 2 years ago.

I have complained before, however I have not said - I will break the contract. Is your gut feeling that I would have needed to have provided this warning?

Does the notice allow for termination by both parties, does it define the reasons a party may terminate?
Customer: replied 2 years ago.

Supplier being my Ltd, and Company being the company i'm working with. There are no terms for me to terminate written down.

. Termination

  1. Written Notice. Company may terminate this Agreement by giving Supplier written notice if:

I. Supplier commit a material breach of Supplier’s obligations hereunder and the breach, if capable of remedy, is not remedied within 30 days from the date Supplier receive written notice requiring remedy of the breach; or where the breach is not capable of remedy, with immediate effect upon receipt of such notice by Supplier; or

II. Supplier become bankrupt or have a receiver appointed over all or any of Supplier assets.

will the company suffer a loss if you decide not to continue to do the work? If they were to pay you on time in the future would you be happy to continue?
Customer: replied 2 years ago.

The company could/would suffer a loss if I stop work today. I intend to re-negotiate (on the same money) to work for them on a 2 week rolling contract moving forwards.

Ok the contract allows you to terminate in the event that the 'breach' failure to pay cannot be remedied within 30 days.
I would suggest you arrange a meeting with them to say that you as a supplier are disappointed with their persistent failure to pay in accordance with the terms and that you are not prepared to continue to work on that basis. You can offer your renegotiated terms as an alternative to giving notice under the contract.
If they do not agree and you do end the contract then your potential risk is a claim in breach of contract to recover their losses in the event that they can show that the breach would be remedied within 30 days.
If you have any further questions please do ask. If I have answered your question I would be grateful if you would take the time to rate my answer. Thank you and all the best.
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