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Chris The Lawyer
Chris The Lawyer, Lawyer
Category: New Zealand Law
Satisfied Customers: 18766
Experience:  32 years qualified as a lawyer; LLB, MMgt and FAMINZ.
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we have had a contract with a large telecommunications company

Resolved Question:

we have had a contract with a large telecommunications company for 8 years and they have been sold and we do not fit the dealer model of the new company so they have given us 60 days notice of the termination of our contract.
It states in the contract that any payments stop when the contract stops, but we feel that after 8 years of building their base and most of the customers are in signed contract they should compensate us for the loss or future earnings.
Is this worth persuing
Submitted: 1 year ago.
Category: New Zealand Law
Expert:  Chris The Lawyer replied 1 year ago.

christhelawyer : HiWelcome to JustAnswer. My first response will follow shortly. Please feel free to follow up if anything is not clear
christhelawyer : This would depend on the wording of the contract and what it says about termination. Does it say they can terminate and does it have a notice period? Is this contract for a certain term, or open ended? Does it provide for termination for breach?
Customer:

Hi

christhelawyer : Hi
Customer:

the exact wording is as follows "17.4 Termination without clause "subject to clause 17.5 this agreement may be terminated at any time by either party giving not less than 60 business days prior written notice to the other party"

Customer:

17.6 Effect of Termination

Customer:

(d) The xxxx xxxx will have no further right to receiev any remuneration from xxxx in respect of The xxx xxx 's performance of its obligations under this agreement

Customer:

Term of the agreement

Customer:

"The term of this agreement shall be 24 months from the date of signing this agreement unless terminated earlier. Renewals will be subject to the agreement of both parties

christhelawyer : I believe with that termination clause they do have the right to bring this to an end. A clause like this is often used in this sort of contract to enable the parties to cancel the arrangements. The only basis for claiming damages would be if there was some representation that you would continue to a certain time, and you changed your position in reliance on this.
christhelawyer : The termination clause would override the term clause.
Customer:

I have just looked at it and it looks like the contract wasn't renewed last time yet we have continued to sell for them and be paid our monthly commission

Customer:

we thought so it is just disappointing to put in all this hard work and have them not take this into consideration

christhelawyer : I can understand this disappointment. But often large companies just do this, without thinking of the years of service, and sadly get away with this.
Customer:

If they have neglected to get me to sign a renewal yet have continued to pay me and we have continued to work on their behalf does this change the game plan any?

christhelawyer : I comment above on the possibility that if there were indications that the arrangement would continue long term, then if you changed your position in reliance on that, you may have a case. But perhaps not strong.
christhelawyer : I would suggest perhaps the least risky would be to see if they would agree to a commercial mediation, to see if they will look at the cancellation again, and listen to your perspective. However they would need to agree to this.
Customer:

I think we will just move on and put our energy into moving the customers once they are out of contract.

Customer:

Many thanks for you assistance

christhelawyer : I am sorry I cannot bring better news
Customer:

jsut one more quick questions

Customer:

because the contract from our side of things is non exclusive meaning we can sell our other services along side this contract

Customer:

they cannot approach the customers on our list before the 24th of September in order to stop us from signing them up to one of our other suppliers

Customer:

where would this be mentioned in the contract do you think?

christhelawyer : If there was a restriction on doing this, they would have a clause stating the limits. So check the contract if any clauses prevent you from approaching their customers.
christhelawyer : Otherwise you are likely to be ok
Customer:

I am more concerned about them appointing a new account manager without our permission before the 24th of Sept

christhelawyer : They can employ who they please of course, although I assume this is to ensure they protect their customers
Customer:

Hi

Customer:

I have more clarification our contract expired on 30th of september 2012 there is no rollover clause and we need to both agree to renew. So there is no contract.

Customer:

So with no contract where do I stand with the future earnings?

Customer:

they have continued to pay me a monthly commission every month since the contract stopped and we have contiuned to sign up people on their behalf

Customer:

i would have thought that it leaves a rather large grey area

christhelawyer : At law, there is a contract, which by your mutual actions, you have agreed to roll over month to month. Other parts are more uncertain, such as the notice clause for cancellation, because if this is month to month, they could just cancel at the end of the month.
christhelawyer : so you have an enforceable contract but effectively on different terms, as to the duration.
Customer:

so the confidentially and other terms in the original contract still exist?

christhelawyer :

Yes, all the other terms are still in the contract-the whole contract save for the term clause, would be rolled over and be in force.

Chris The Lawyer, Lawyer
Category: New Zealand Law
Satisfied Customers: 18766
Experience: 32 years qualified as a lawyer; LLB, MMgt and FAMINZ.
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