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Ben Jones
Ben Jones, UK Lawyer
Category: Law
Satisfied Customers: 75168
Experience:  Qualified Solicitor
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We have a contract between my company and a private family

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Hi, we have a contract between my company and a private family to provide services related to advice, support, training and delivery of their new yacht. During the execution of the proces, they now uniteraly terminated the contract after two reminder from my side for not paling their invoice. Which is in fact a breach of contract. What is your proposal how to proceed?
JA: Where are you? It matters because laws vary by location.
Customer: The contract stipulates UK law is applicable. My company is in the London area
JA: What steps have you taken so far?
Customer: All correspondence including, our response on their very subjective reasons for cancellation (no facts, nor figures), proposal finding a solution and a registered letter regarding final notice and breach of contract
JA: Is there anything else the Lawyer should know before I connect you? Rest assured that they'll be able to help you.
Customer: My clients live in London but from what we understand, their property is for sale and they are going to live on their new catamaran in the Carribean. We fear they (will) not have assets in the UK to secure our payment.

Hello, I’m Ben. It’s my pleasure to assist you today. I may also ask for some preliminary information to help me determine the legal position.

What reason have they provided for terminating the contract? and please copy and paste your cancellation policy on here

Customer: replied 20 days ago.
Bottom line was "lack of trust" for next part of the contract to be executed and also saying I did not performe what was agreed upon. I replied with all the activities we had done for them, including their very positive feed-back before termination. Once they received the invoice and after 2 reminder, they terminated the contract.
The contract has no cancellation police as our services are always very specific and limited in time

OK I understand and thank you for providing this information. Please leave it with me for now; I will get back to you with my answer as soon as I can, usually the same day. The system will notify you when this happens. Please do not reply in the meantime as this may unnecessarily delay my response. Many thanks.

Ben Jones and other Law Specialists are ready to help you

Many thanks for your patience, I am pleased to be able to continue assisting with your query now. First of all, I am sorry to hear about the issues you have experienced in your situation.

If they have terminated the contract without the ability to do so under its terms, then it would indeed amount to a breach of contract. In these circumstances, you can consider pursuing them for compensation for any losses incurred as a result. Usually, these would be your loss of profit and any other costs which you have already incurred, or will inevitable incur, without being able to recoup or offset. However, any costs which they would have been liable for, which you will no longer incur because of their lack of participation, you cannot charge them for.

If a party wishes to pursue another for financial compensation arising out of a dispute between them, they can potentially do so by making a court claim. However, as legal action should only be used as a last resort, there are certain steps that should be taken initially to try and resolve this matter informally and without the need to involve the courts. It is therefore recommended that the following steps are taken in order to try and resolve this:

1. Reminder letter – if no informal reminders have been sent yet, one should be sent first to allow the other party to voluntarily settle this matter.

2. Letter before action – if informal reminders have been sent but have been ignored, the other party must be sent a formal ‘letter before action’ asking them to resolve this amicably within a specified period of time – 14 days is reasonable. They should be advised that if they fail to make contact to resolve this matter, formal legal proceedings will be commenced to pursue them for compensation. This letter serves as a ‘final warning’ and gives the other side the opportunity to resolve this without the need for legal action. There are numerous templates available online for such letters and a simple search will bring up a list of useful results.

3. If the letter before action is also ignored, formal legal proceedings can be initiated. A claim can be commenced online by going to https://www.moneyclaim.gov.uk/web/mcol/welcome. There will be a fee payable, which depends on the amount that is claimed. The other side will eventually get a copy of the claim and they will have a limited time to answer it. They could accept it and pay what is owed, they could accept it only in part and defend the rest, or they could outright reject it. They could also completely ignore it, in which case judgment will eventually be entered automatically against them. Also, it is worth noting that the simple act of submitting a claim could show the other side that this is being taken seriously and prompt them to consider negotiating a potential solution to stop the claim progressing further, such as offering full or partial payment of the amount sought in the claim.

Hello, following my main response above, I just wanted to check that everything was clear. If you have any further queries about this issue, you can reply to me at any time on this portal and I will be happy to help. Thank you.

Hello, I trust that everything has now been resolved to your satisfaction and your original question has been dealt with. If you have any further queries about it, please do not hesitate to get back to me on here. In the meantime, I wish you all the best.