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Ben Jones
Ben Jones, UK Lawyer
Category: Law
Satisfied Customers: 50165
Experience:  Qualified Solicitor
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I took out a advertising contract in 2014 and my

Customer Question

Hi I took out a advertising contract in 2014 and my understanding was that it was for two years. I decided to cancel the advert and it has been brought to my attention that after the two years the contract will automatically become a twelve month rolling contract. I have been told I can only come out of this in July 2017. When I signed the contract my business was a partnership but in Jan 2015, I became a ltd company. Would I be able to cancel this agreement before July 2017 on these grounds?
Submitted: 1 year ago.
Category: Law
Expert:  Ben Jones replied 1 year ago.

Hello, my name is***** am a qualified lawyer and I will be assisting you with your question today.

Expert:  Ben Jones replied 1 year ago.

Were you made aware of the roll over?

Customer: replied 1 year ago.
It's in the small print on the back, but the same old story these reps get you to sign after they've done their talk on the service etc but I was never told about the roll over I was led to believe my contract was for two years.
Customer: replied 1 year ago.
I prefer to type got a noisy background as in a workshop.
Expert:  Ben Jones replied 1 year ago.

OK no problem at all and thank you for your response. I will review the relevant information and laws and will 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. Also, please do not responded to this message as it will just push your question to the back of the queue and you may experience unnecessary delays. Thank you.

Expert:  Ben Jones replied 1 year ago.

Thanks for your patience. So this is a rolling contract which automatically rolls over for a new term unless cancelled with the specified notice. In certain consumer cases such rolling contracts have been deemed illegal and are banned. However, assuming you are a business customer and were using their services for business purposes, 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 and understand the clauses you are signing up to. The law 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.

Whilst you may have changed the status of the entity you had entered the contract with initially, what is likely to have happened is that the new entity would have replaced the original one on the contract, assuming that you continued to use their services throughout.

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 less than the fees you would have had to pay for the remaining 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 also it may not be worth their time going to court for the amount they may be pursuing you for so you could take your chances in that respect.

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

Expert:  Ben Jones replied 1 year ago.

Hello, I see you have read my response to your query. If this has answered your question please take a second to leave a positive rating by selecting 3, 4 or 5 stars from the top of the page. I spend a lot of time and effort answering individual queries and I am not credited for my time until you leave your rating. If you still need further help please get back to me on here and I will assist as best as I can. Many thanks.

Expert:  Ben Jones replied 1 year ago.

Hello, do you need any further assistance or are you happy with the above response? Look forward to hearing from you.