Breach of Contract?

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K

kando

Free Member
Aug 26, 2006
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  • #1
    Firstly, I work as a Software Consultant through my own limited company - I gain work both from agencies and direct from clients - both end clients and other consultancies.

    This query relates to a contract I had with another consultancy company. The contract duration was 10 days but I only worked one day before I had problems and was unable to work the second day (although I was happy to work from day 3 onwards). I phoned the consultancy the evening of the first day to advise them I was having problems but the next day I received a phone call saying that the end client had cancelled the contract.

    I was surprised but accepted this was the case. I duly invoiced for the one day that I had worked, but as this was 3 weeks ago, and despite my reminders, payment has still not been made. Given this, I was going to email the consultancy quoting that payment should have been made within 7 days after invoice but it was then that I noticed the cancellation terms and it is this I am seeking help on.

    The contract states that -

    "In the event of cancellation or postponement by the customer of any day booked, the customer will be liable for payment for the consultant's time.

    Consultancy or the contractor may cancel this agreement at any point by giving the other party one months notice in writing."

    I believe the cancellation of this contract was therefore in breach of the contract and that the full cost of the contract - the full ten days - would now be payable.

    Please can anyone advise me on this and possible next steps?

    Thanks in advance.
     
    P

    Pebble Communications

  • #3
    Wait for the legal beagles to turn up but as you were the one to cancel in the first place I doubt you'll get the money for the whole 10 days. (even though you would have completed other days, you still broke your contract).
     
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    K

    kando

    Free Member
    Aug 26, 2006
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  • #4
    Pebble Communications said:
    Wait for the legal beagles to turn up but as you were the one to cancel in the first place I doubt you'll get the money for the whole 10 days. (even though you would have completed other days, you still broke your contract).
    Click to expand...

    I did not cancel in the first place - i simply advised them that I was having problems and that I would be unable to attend for the second day - I was quite willing and able to go in from day 3 and work the rest of the contract.

    There is no room in the contract for termination as the contract was for 10 days and the cancellation period was 1 month. I was advised that the client had cancelled the contract - I did not cancel the contract. I thought I had been clear in my first post.
     
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    bwglaw

    bwglaw

    Free Member
    Apr 8, 2005
    4,567
    242
    Richmond, Surrey
  • #5
    The first issue is whether you were obliged to work that day, the day you were having problems.

    The second issue is whether the contract has become 'frustrated' and thus giving the client the right to terminate the contract forthwith.

    To ascertain the above I would need to see the entire contract and not sections that you believe to be relevant.

    If you can email this to me at the address below I will have a look and advise accordingly

    Jonathan
     
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    bwglaw

    bwglaw

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    Apr 8, 2005
    4,567
    242
    Richmond, Surrey
  • #8
    It does not appear to be a simple matter of debt recovery because if the contract was for a fixed-term i.e. 10 days, and you had only performed one day then you are likely to be in breach and the client will attempt to refuse payment and counterclaim if you claim for the 1 day.

    I will respond to your email later today. Still catching up..

    Jonathan
     
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    K

    kando

    Free Member
    Aug 26, 2006
    32
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  • #9
    Hmm.
    I do not think that I am in breach as I was more than willing and able to continue the contract after the one day which I advised the consultancy I was having problems.
    I also spoke to them after this time and they said that paying me for the day worked would not be an issue as I duly worked that day.
    However, I issued an invoice more than 3 weeks ago and despite my calls to the company and talking to the MD, I still have not received payment.

    As far as I am concerned, the contract clearly shows there is no space for cancellation, so surely they are in breach for cancelling said contract?

    In any case, I will wait for your emailed reply.

    Thanks
     
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    DuaneJackson

    DuaneJackson

    Free Member
    Jul 14, 2005
    8,641
    1,099
    Brighton / London
  • #10
    I might be way off - but I suspect you may be overreacting.

    Have they yet stated that they are refusing to pay on grounds of a breach of contract?

    Before you get heavy with the legalities and quoting clauses at them (which will only get their backs up), try to find out why you haven't yet been paid. It may just be that they are having cashflow issues and fully intend to pay you next week.
     
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    K

    kando

    Free Member
    Aug 26, 2006
    32
    0
  • #11
    Hi

    Thank you for your post.

    It is not them that is claiming breach of contract it is my suggestion. I do not know why they haven't paid me but I do know that they are a huge company so settling my invoice should not cause any problems. I'm sure if *they* thought I had breached the contract, i would have heard by now.

    I have been treated badly before so thats why I will take on companies who do that.

    I believe, rightly or wrongly, that a contract is in place to protect both parties and I know I couldn't have cancelled in the way that they cancelled my services.
     
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    K

    kando

    Free Member
    Aug 26, 2006
    32
    0
  • #13
    bwglaw said:
    I have read the contract and will be emailing you with some good news

    Jonathan
    Click to expand...

    Good News turned out to be VERY good news. Thanks to Jonathan, the debtor paid the full contract term of 10 days. It took a letter from Jonathan and phone calls from my company every day but it was all worth it as we received full settlement.

    Thank you again Jonathan.

    Alison
     
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    U

    ukbiz2010

    Free Member
    Jun 30, 2010
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    0
  • #15
    bwglaw said:
    The first issue is whether you were obliged to work that day, the day you were having problems.

    The second issue is whether the contract has become 'frustrated' and thus giving the client the right to terminate the contract forthwith.

    To ascertain the above I would need to see the entire contract and not sections that you believe to be relevant.

    If you can email this to me at the address below I will have a look and advise accordingly

    Jonathan
    Click to expand...

    Just wandering what the term "whether the contract has become 'frustrated'". Anyone know what a frustrated contract is? cheers
     
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    M

    MrMichael

  • #18
    Frustrated as in the purpose of the contract is no longer capable of being achieved as the parties' intentions have been frustrated. This is often owing to a 'force majeure' event, i.e. an event outside the control of the parties often referred to as an 'Act of God'.
     
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