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Ben Jones
Ben Jones, UK Lawyer
Category: Law
Satisfied Customers: 51162
Experience:  Qualified Solicitor
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If a business pays for stock which a supplier is trying to

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If a business pays for stock which a supplier is trying to withhold due to termination of a contract and all balances are cleared can they do that?
Assistant: Where are they? It matters because laws vary by location.
Customer: England, UK
Assistant: What steps have they taken so far?
Customer: We have asked them to cancel a contract which hasn't even gone live, but they insist we have to pay £3494 due to them buying stock for the new contract, have offered to pay for the stock so they are not at a loss, but they insist on us paying but not getting the stock...
Assistant: Anything else you want the lawyer to know before I connect you?
Customer: The supplier is a overalls and floor mats cleaning company

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

How long ago would payment for this stock have been made?

Customer: replied 5 days ago.
A month ago

OK thank you for your response. Leave it with me for now and I will review the relevant information and laws and will get back to you as soon as I can. Please do not respond to this message as it will just push your question to the back of the queue and you may experience unnecessary delays. Thank you

Many thanks for your patience. If they are trying to get you to pay for the stock and not give you anything in return, then that is unlikely to be legal. They cannot just hold your money and not provide anything in return. Generally, that would be in breach of contract and unlawful. They could consider withholding any sums they owe you but only if they have a specific clause allowing that, or you have been the one breaching the contract in the first place AND they have suffered specific losses as a result, to the value of the money they are withholding. Without both of these, it is very unlikely they can just demand payment and give you nothing in return. As you are the one who owes them, let them take it further and prove their case. They cannot force you to pay them and if they were really adamant that you must, then they will have to take you to court, make a claim against you and win it. Even if they do that and you lost, as this would go to the small claims court, the risks are rather low and you would not be responsible for their legal fees. Therefore you can consider calling their bluff and seeing how far they are prepared to take this.

Does this answer your query?

Hello, I see you have read my response to your query. Could you please let me know if it has answered your original question? You can either reply on here with a quick ‘Yes, thanks’, or select 3, 4 or 5 stars on this page. I can still answer follow up questions if needed to clarify anything for you. Many thanks

Customer: replied 19 hours ago.
thanks

you are most welcome

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