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Chris The Lawyer
Chris The Lawyer, Lawyer
Category: New Zealand Law
Satisfied Customers: 22686
Experience:  38 years qualified as a lawyer; LLB, MMgt and FAMINZ.
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I signed an agreement with a supplier of a beauty product

Customer Question

Good day,
I signed an agreement with a supplier of a beauty product based in USA (although I place my orders thru the AUS agent) in February 2015. Last month the AUS office sends me an email saying that our first agreement is cancelled & that I have to sign a new agreement which they sent thru before they will supply me. I went through it but had questions and when I emailed them about it, her reply was short - that I am unhappy with everything they have done so far and obviously this agreement is too much of a burden on me so she will relieve me of the "hassle" of it. This was from the AUS agent Thursday last week. I have not heard a word about this from the USA office & havent contacted them yet either.
My question: Surely they can not just " cancel " a signed contract? And surely they cant with hold stock to manipulate me into signing another (even worse contract than the fist one)
Am I still bound by the 2 year restraint of trade clause?
Or is the contract still binding thru the USA office? I m not even sure that they know about what has been going on with their AUS agent & me.
What should I do?
Submitted: 1 year ago.
Category: New Zealand Law
Expert:  Chris The Lawyer replied 1 year ago.

They can only cancel a contract where there has been a breach of the contract, and cannot just withdraw this as you describe, unless the contract has a clause which permits this. The reality is that suing them for the breach would likely be very expensive. If you have a restraint of trade clause that can sometimes survive cancellation, but in these circumstances, you could negotiate a release. I suggest you contact the US supplier first and explain that the cancellation is not accepted and you don't want to deal with the agent in Australia any longer.

Customer: replied 1 year ago.
Thanx for your response. The contract has no cancellation clause. Nor a clause or duties & responsibilities. Lookig at it now, its very one sided.I will call her today and discuss it. Thank you.
Expert:  Chris The Lawyer replied 1 year ago.

Discussion is best if she is reasonable of course

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