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Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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I have a pub which has been up now. It

Customer Question

I have a pub which has been up for sale for sometime now. It was marketed by a business sales company. I signed up to give them sole selling rights for 12 months which has now passed. When I asked them to stop as selling agents they pointed out that the sole selling rights remain with them until I pay a £900 fee. If that`s the case what is the point of having a 12 month timescale. I have a copy of the terms and conditions which I can email to you. Do you think this is correct?
Submitted: 2 years ago.
Category: Law
Expert:  Ash replied 2 years ago.
Hello my name is ***** ***** I will help you.
What does it say about how long they have sole agency for please?
Customer: replied 2 years ago.
Clause 2 states : I/We hereby appoint ###### ***** agents for the sale of my/our property and/or business, and give you sole selling rights for an irrevocable TWELVE MONTH period subject to my/our options under clauses 12 and 13. I/We agree that these sole selling rights shall remain in force after that date until terminated by me/us or alternatively by your company. Termination, by either of us must be delivered in writing by registered or recorded delivery post, and must provide 28 days advance notice.
Clause 14 states : I/We agree that upon me/us or alternatively you serving notice of termination of this agreement in accordance with clause 2, and provided that this termination in no way breaches any other clauses contained herein, then I/we agree to pay you the sum of nine hundred and fifty pound plus vat as a withdrawal fee. This sum to be paid no later than the required notice period, or forthwith if notice is not applicable. I/we understand this fee is to cover any and all work you have carried out in order to earn your commission.
Expert:  Ash replied 2 years ago.
Does it say anywhere it's sole for a certain period of time?
Customer: replied 2 years ago.
12 months is mentioned in clause 2 which i have sent you, but it goes on to say they retain sole rights shall remain in force after that period too unless i pay them £900.
Expert:  Ash replied 2 years ago.
It's bad news then. All you can do is argue the clause is unfair.
Regulation 5 of the unfair terms in consumer contract regulations 1999 states
5.—(1) A contractual term which has not been individually negotiated shall be regarded as unfair if, contrary to the requirement of good faith, it causes a significant imbalance in the parties' rights and obligations arising under the contract, to the detriment of the consumer.
(2) A term shall always be regarded as not having been individually negotiated where it has been drafted in advance and the consumer has therefore not been able to influence the substance of the term.
That is your best arguing points. Can I clarify anything?