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Ben Jones
Ben Jones, UK Lawyer
Category: Law
Satisfied Customers: 49836
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I'm a small business owner. Limited company. 2 directors and

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I'm a small business owner. Limited company. 2 directors and we are the only shareholders. We purchased 3rd party software manage our online business and signed a 12 month contract, what we missed on the contract is if we don't cancel within 3 months of the contract ending we are automatically enrolled into another 12 month term. Our contract ends on the 26th October 2016, and I thought I would have to cancel within a month. I'm cancelling as we can no longer afford the payments beyond our renewal date. Is there anything I can do or is my only option to strike off the company as we do not have assets and our revenue just can't cover the monthly payments.

Hello, my name is***** am a qualified lawyer and it is my pleasure to assist you with your question today.

Customer: replied 1 year ago.
Hi Ben, thanks for your assistance.

Hi there. Prior to it's renewal, were you notified in any way that the contract will roll on for another 12 months; apart from what the contract states?

Customer: replied 1 year ago.
No renewal or reminder.

OK thank you, ***** ***** it with me. I am in court today so will prepare my advice during the day and get back to you at the earliest opportunity. There is no need to wait here as you will receive an email when I have responded. Thank you.

Customer: replied 1 year ago.
Okay great. Thank you for the response. Look forward to hearing from you.

No problem at all

Many thanks for your patience. As a business customer you will not be subject to the usual consumer laws and protection that individuals get, such as unfair contract terms. It is assumed that as a business you are well informed and able to read a contract given to you, including the small print. The law prohibiting automatic rolling contracts is specifically aimed at consumers, meaning someone not dealing in the course of a business. Therefore, you will be bound by this clause and failure to follow it will potentially place you in breach of contract. So if you renege on the contract they could pursue you legally for damages. However, they are not entitled to the full amount of their service until the end of the contract. They are entitled to compensation/damages which is their loss of profit. So it would be the actual profit they may have made, not the direct cost of services to you. This will be much less than the fees you would have had to pay for the full new term. You can try and cancel the contract and send them a cheque or payment and tell them it is in full and final settlement of the fees you would owe them and if they cash or accept that payment then you can argue that they cannot claim further against you. At least try that, you have nothing to lose. I they reject that and wish to continue pursuing you there is nothing stopping them from doing so and even going to court. However, they would have to justify that hat they are after is fair and reasonable and as mentioned that will almost certainly be a much reduced amount than what they are currently after. There is no need to fold the company just yet – at least get a feel of what their position is and what their likely response will be before you do so.

I hope this has answered your query. I would be grateful if you could please take a second to leave a positive rating (3, 4 or 5 stars) as that is an important part of our process and recognises the time I have spent assisting you. If you need me to clarify anything before you go - please get back to me on here and I will assist further as best as I can. Thank you

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Customer: replied 1 year ago.
Hi Ben,Thanks for all the information and making me aware of where I stand. The fact that I'm only off by 3 weeks from cancelling is quite frustrating. I'll contact my account manager for the software and see If I can cancel and just pay a small fee with the delay of 3 weeks and see if I can get out of the contract.

You are welcome and all the best, ***** ***** to get back to me if you need further help, thanks