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Buachaill
Buachaill, Barrister
Category: UK Law
Satisfied Customers: 8454
Experience:  Barrister 17 years experience
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Hello,I have signed a contract with a company assisting

Resolved Question:

NOTE: I did not select UK Employment law as it is irrelevant to this question - it was placed under Lawyer/Solicitor category

Hello,

I have signed a contract with a company assisting with marketing services last week but I am not happy with their services so far, I decided to cancel the contract but in the contract, it states as follows:- This contract is non-cancellable and by signing it you agree to pay the full amount and confirm that you are authorised to sign on behalf of your company.

I have not received any services from them so far as I met them last week and they are due to work with me but I no longer wish to work with them.

I believe that it is invalid clause according to the English law because you can't use a word 'non-cancellable' - it is like being forced to hand over something and can't cancel it? What do you advise?
Submitted: 1 year ago.
Category: UK Law
Expert:  Buachaill replied 1 year ago.
1. There is no such thing as a non-cancellable contract. Prior to performance of the obligations under a contract, each side my repudiate the agreement and the other side is obliged to mitigate their loss. Here as there has been no performance of services, you can simply write to the other side and state that you are anticipatorily repudiating the contract and will not be accepting performance under it. This will bring the contract to an end and the other side will only be able to recover any actual losses they have suffered from you and not the contract price. In practice, as there has been no performance, their loss is zero and you can safely end the contract. This clause is not operative in law.
Please RATE the Answer positively so that I may get paid
Buachaill, Barrister
Category: UK Law
Satisfied Customers: 8454
Experience: Barrister 17 years experience
Buachaill and 4 other UK Law Specialists are ready to help you
Customer: replied 1 year ago.

Thank you for your reply but I got an email from the boss - see this?


 


<<<<<<<<<<<<<<<<<SNIP>>>>>>>>>>>>>>>>>>>>>>>


 


I wrote to ask you whether you would like to resolve the dispute over your contract with us before we pass to our solicitors. In fact, they already have the documents but I asked them yesterday to hold off until I had made contact with you.

Are you maintaining the stance that you with to renege on the contract you signed? If so, then we will have to resort to the courts to enforce payment.


 


<<<<<<<<<<<<<<<<<SNIP>>>>>>>>>>>>>>>>>>>>>>>

Expert:  Buachaill replied 1 year ago.
1. This letter changes nothing. It is merely your boss realising that he doesn't have a good case legally and he doesn't want to give the case about the contract to his solicitors as it will cost him money. Be aware that if legal advice is received, it will be to the effect that there is no such thing as a non-cancellable contract.
Please RATE the Answer positively so that I may get paid
Customer: replied 1 year ago.

Thank you for your response.


 


Can you tell me what to say to him in writing?


 


Many thanks

Expert:  Buachaill replied 1 year ago.
2. Simply inform him that there is no such thing as a non-cancellable contract in law and his company is under a duty to mitigate their loss. As there was no performance under the contract, then there is no money owing.
Customer: replied 1 year ago.
Is this okay?


Thank you for confirming that you are not interested to meet me in personal to find solutions.

I inform you that there is no such thing as a non-cancellable contract in law and your company is under a duty to mitigate your loss. As there was no performance under the contract, then there is no money owing.

If you wish to pass onto your solicitor then you are welcome to lose more money because simply, you don't have a good case legally.
Expert:  Buachaill replied 1 year ago.
yes
Buachaill, Barrister
Category: UK Law
Satisfied Customers: 8454
Experience: Barrister 17 years experience
Buachaill and 4 other UK Law Specialists are ready to help you
Customer: replied 1 year ago.

This is for Buachaill


 


Hello, I hope this finds you well.


 


I've handed in a 3 months notice to Regus in March of this year and they hold my two months deposit and they used that up to cover 2 months and then they are demanding me to pay the 3rd monthly fee because of 12 months contract. I was thinking of your words. I think I should receive two month deposit back and 3rd month to be cancelled because they already vacated my office to someone else as soon as I handed in a notice. Therefore their loss is zero. Can I use this?



I inform you that there is no such thing as a non-cancellable contract in law and your company is under a duty to mitigate your loss. As there was no performance under the contract after I handed in a notice, then there is no money owing. Therefore I await two month deposit to be refunded back to me due to the fact that you rented my office to someone as soon as I ended my tenancy agreement.


 


 


 


 


 

Expert:  Buachaill replied 1 year ago.
1. This is the first time you have mentioned Regus, who are office service providers and this is the first time you have mentioned a deposit. In your original question you said the contract concerned "assisting with marketing services"!!! The advice would have been different if you had said it was an office services contract & you had given a two month deposit. Quitting a property contract where there is a deposit is very different to an ordinary contract for marketing services.
2. I regret to say that Regus are within their rights to keep your two months deposit where you quit a tenancy in the form of an office services contract. No court is going to order the refund of a deposit for a tenancy for office services. Whilst they are also under an obligation to mitigate their loss, a tenant will loose their deposit when they quit a tenancy early. Now you need to negotiate that you don't have to pay a third month. However, in this regard, if you raise the mitigation principle and ask for your deposit back because they immediately rented the office, that will make them go away, once they realise they have a downside.
Customer: replied 1 year ago.
My apologise. It is a completely different issue and how can I enter a new question to you? I think it applies the same but thank you for your time. How can I compensate you for your time?
Expert:  Buachaill replied 1 year ago.
3. I can answer this Question but you should RATE the Answer positively once again.
4. The principles applicable to this Question are different because they relate to property rentals. Effectively, you will forfeit the two months deposit. However, you should resist Regus seeking to recover the third month's rent as this does involve the principle of mitigation of loss. If Regus immediately got someone else into the office, then their loss is minimal and they will not be able to recover those monies from you. so you should stand your ground on this issue.
Please RATE the Answer positively
Buachaill, Barrister
Category: UK Law
Satisfied Customers: 8454
Experience: Barrister 17 years experience
Buachaill and 4 other UK Law Specialists are ready to help you

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