Help for a friend

[AHAEvents]

A friend of mine owns a music shop but is closing down in a weeks time. He has just received a letter from somebody asking for £100 or they will take them to court. This is what happened:

Somebody went in to purchase some CD's on their account, but due to the shop shutting down all accounts have been closed. They told the person in question this, so they purchased the CDs on a debit card instead. The person then returned to the shop a little later and requested a refund which they gave him.

They have since received a letter from this person saying that they were in breach of their contract as they didnt notify him that they were closing his account. He has requested £100 as a settlement or he will take them to court.

Any contract that was between the shop and this person was a verbal one. The person hadn't used his account for a year, and when he did it took him 6 months to pay, although payment is due on the 7th of each month (there is a sign stating this fact in the shop).

Personnaly I think my friend should ignore the letter as it sounds like the person is just trying to make some fast cash. But what if it does go to court, where does my friend stand?

[Pebble Communications]

This would be laughed out of court.

[bwglaw]

Ignore the letter or reply amicably and ask the person to set out the basis of their claim with reference to any terms that he/she believes is a breach of contract etc.

By the time he/she replies the shop will be shut! In any event, the shop is entitled to withdraw credit facilities and is more entitled to close an account that has been inactive for more than a reasonable amount of time and where a customer has failed to pay within the terms.

In fact, the shop can counterclaim the above but this whole matter is a waste of time and a mockery.

It would cost this person far more than 100GBP to get started in Court!

Jonathan

[AHAEvents]

Many thanks folks, its more or less what I said to them.

I think the person in question was trying to use his newly brought "elite title" to scare them into paying him a settlement!

[Cornish Steve]

While I defer to the legal types here, there's usually no case without something in writing. This means that, if your friend sends a letter in response, s/he should be very careful with the wording. In effect, that letter will be the first written statement from the company on the matter.

[bwglaw]

Not likely to be the case here because by asking the person to put his/her complaint in writing setting out the claim is not construed as an admission of liability. Even though a contract can be created by other means than in writing. The contract has been formed in any event.

The shop could send a letter and say there is a breach but this can be withdrawn if the Court finds there is no fundamental breach as such. The Courts here recognise that not all persons running a business are legal-trained and go some way in exercising its 'overriding objective' to find the breach, if not found, the Court would uphold this and find in favour of the shop.

Sometimes by adding 'Without Prejudice' to the top of the letter can offer some protection but Courts are now exercising their powers to determine what should be construed as prejudicial. In some cases the Courts have ignored the 'Without Prejudice' correspondence and allowed it to be entered as evidence.

Just some thoughts...


Jonathan