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My Company had a twelve month commercial contract with Sky…

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My Company had a twelve...
My Company had a twelve month commercial contract with Sky TV. four months into the contract I had the goods returned, thereby unable to fufil contract as I did not have the goods. I owed them two months payment at the time and am happy to pay that. I am now attending small claims where they are seeking payment for the full 12 months plus interest, some $10500. They are seeking this from me as guarantor. Can I use the argument that I could not fufil the contract because the means to do that had been returned. Really appreciate some advice re this.
Submitted: 3 years ago.Category: New Zealand Law
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6/22/2015
Solicitor: Chris The Lawyer, Lawyer replied 3 years ago
Chris The Lawyer
Category: New Zealand Law
Satisfied Customers: 23,839
Experience: 38 years qualified as a lawyer; LLB, MMgt and FAMINZ.
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If it was Sky that returned the goods, then that really brought the contract to an end with your company. Is that the position?
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Customer reply replied 3 years ago
Hi Chris. Sky uplifted the goods . It seems that there debt collection company MFL were over zealous . I am given to understand that Sky's contract is lacking in detail as to what the monetary calculation should be. Sky have today advised they wish to re look at the charge from their standpoint and want to negotiate with MFL to reduce their collection charges. Do I role over or stand firm .? On the basis that the contract had ceased on the recovery of the goods. ? Many thanks Moira
Solicitor: Chris The Lawyer, Lawyer replied 3 years ago
You have no obligation to pay debt collection fees unless this is included in the contract. But if Sky instructed them to collect the equipment before a default, then that may be the end of any claim. If there had been a default in payments, then they may be entitled to cancel and collect the equipment however. But you can certainly argue that you should not pay any more, although it would depend on what their contract says happens on a default
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