Cancelling a B2B Contract?

A new client (business) asked my opinion today on something which I have no idea about!

They've just opened up their shop, and were approached by a rep from a "media advertising" company to display their adverts on the back of doctors appointment cards and other random places.

She was "pressured" into signing the agreement (£450pa + vat for 2 years), and figured it was a way to get the rep out of the shop while her husband wasn't there. 

Only after he'd gone did she realise that the agreement states "As this is a business to business agreement, it cannot be cancelled."

Seems a bit harsh, but it wouldn't surprise me either.  Does anyone know where she stands on this issue - is there a way to get the agreement cancelled?  You won't be surprised to learn that the company are refusing to cancel it....

Hope someone can help :)

Cheers, Steve

Did she pay by card? If so, just cancel it with her card company.

Hi Lee, 

unfortunately, she paid the deposit by cheque.  She hasn't paid the whole thing yet, and she cancelled the cheque as soon as she realised (I think that's what prompted them to "kick off"!)

They're obviously pursuing her for the whole lot...

Cheers, S

I don't know the actual legal situation, but lets look at the real life scenario... she hasn't given them any money, she will not be providing them with any copy, she has told them within a very short space of time she has changed her mind... worst case scenario and this comes to court... are they likely to win a judgement against her, and is it worth the risk for them for just £500???

Companies like these use bully boy tactics to frighten people into continuing with a contract they do not want. Beware all advertising, but especially those on the back of appointment cards/maps in hospital grounds/ calenders on behalf of good causes.

Everyone in business should really study assertiveness and learn to say no. Far less hassle.

Hi Stephen.

I asked a similar question a couple of weeks ago and because it's business to business it's very unlikely she can break the contract signed. Unless it can be proved that she was wrongly pressurised into it.

Of course it might be slightly different from the question I asked and hopefully someone from the legal profession will be able to help soon xx

I think she is in a weak position (unless it is a scam).

The contract seems to be for £900+VAT and having paid a deposit by cheque and signed a contract she appears to be bound by it, unless there has been misrepresenation or worse (e.g. fraud). The DSR (door step regs) don't apply B2B so no cooling off period.

Sorry, I think on the face of it likely to be an easy win for the other company (unless there is further relevant information that might change what already stated).

Bill is right. She is in breach of contract. She seems to have entered the contract on the basis that she will be able to cancel - unless she can demonstrate very clearly (backed with evidence as the contract appears to be clear on this point) that she was told that she will be able to cancel misrepresentation does not appear to apply on the brief details above). Fraud will be difficult to prove, although circumastances not clear. She also paid a cheque that she did not honour and that also gives a right to payment of the value of that cheque. Check if there is a cancellation clause allowing discounted payment for early termination.

Argue the point, but if insistent then I wouldn't fancy my chances on this one if it went to court - but I have not seen the contract and there may be relevant facts that will change this opinion.

Well I suppose that's the last time her husband will leave her alone in the shop.

Kev

 

Thanks everyone!

seems like a "done deal" - ah well, never mind, and thanks again for all your advice - I've got some bad news to deliver now.... :(

S

Thanks for the information. Although I have not been in the same situation, it just makes it clear how careful you have to be. I have advertised wasting money in the past and had to put it down to experience. 

 

Best wishes

Hi, I was wondering if anyone can tell me the difference between B2B and B2C. I want to spread my business contacts so want to any business directory to get client information because you know without client database you can’t send your product information to them. So would like to know more about it.

US imort directory

 

ROFL!

Another useful new member there to keep the counter spinning.