Accepting an Email Quotation

[theflyingjetwasher]

Dear All,

A recent problem encountered with a customer:

Emailed a quotation for a job - PDF attachment containing the quotation and our terms & conditions. Our payment window is 14 days after the invoice date or 10% late payment fee applied.

Customer accepts by emailing back that he is happy to proceed as per the quotation.

Job completed and invoice is sent.

14th day and no payment so send a polite reminder to which customer replies and agrees to pay that day or following day.

6 days later, still no sign of payment so a new invoice is sent out with late payment fee added. Customer refuses to pay late payment fee citing that he never signed anything.

Our impression was that an email written back accepting a quotation forms the basis of a contract. Our we mis-lead or are we within the law to chase the late payment charge?

Any help much appreciated.

TFJW

 

[kulture]

I believe that a contract exists and you are entitled to charge the customer according to the contract. Now if they were to argue that the late payment interest was unreasonable, perhaps they would have a point, but they really should have either stuck to the agreement and paid you in the time or queried the agreement and that part of it before agreeing.

 

[theflyingjetwasher]

Kulture,

Many thanks for your points - very helpful.

TFJW

 

[Charlie B ACS]

If they agreed to proceed, as per the quotation, then they are agreeing to the terms within it. A signature is not required for it to become a binding contract.

 

[theflyingjetwasher]

His exact wording was:

'Everything is fine and we would like you to carry out the works as per quote at the above address'

That's pretty explicit in my eyes. Thank you for your advice!

TFJW

 

[Charlie B ACS]

To appear reasonable, and to try and retain custom, I would offer to waive the 10% if payment is made by return.

 

[theflyingjetwasher]

Was the polite reminder not reasonable?

I just think what is the point of T&Cs if people think it is perfectly acceptable to break them.

Its in the hands of our solicitor now - its just a shame/tiring to go through this process...

TFJW

 

[OldWelshGuy]

SOLICITOR? after a week late. You are throwing money down the drain.

He could now argue an unfair contract and you could end up getting nothing, as an unfair contract is legally unenforceable.

For future use, i would suggest you word the contract differently and rather than a penalty for late payment, you word it a discount for payment STRICTLY within X days. That will be enforceable as there is no penalty and it is a fair contract where you have reduced your rate in exchange for positive cashflow.

 

[theflyingjetwasher]

Unfair - on what grounds? I've seen 10% payment charges on other services...

 

[Charlie B ACS]

Was the polite reminder not reasonable?

I just think what is the point of T&Cs if people think it is perfectly acceptable to break them.

Its in the hands of our solicitor now - its just a shame/tiring to go through this process...

TFJW

"Reasonable" as in the customers perception, going to the solicitor at this stage has burnt any chance of repeat business.

Have you made phone calls to chase payment? Do they have a query on the invoice.

Effective credit control will make sure payment comes in promptly, without losing business.

I do agree with the 10% discount for payment, rather than penalty, it is a much better sell, and is less likely to antagonise.

 

[theflyingjetwasher]

I saw him personally a week after the job. Very happy with the job, would have paid me then and there but didn't have his cheque-book. At day 14, our polite reminder, prompted a response that he was sorry and would have the payment arranged immediately. This didn't happen. At day 22, we felt compelled to use our terms & conditions - which is what they are in place for.

I take your point that contacting a solicitor is a firm stance. We don't want to do it. But we feel that we are in no other position. Future business is lost regardless...and in fairness, I don't want to work with people who pay late. All my other customers have no issue with our T&C's.

Its a rather disappointing position for all involved to be honest...

 

[jules12345]

How many spondoolas is it for ? I know everyone wants to know but.... it might have some relevance anyway to others, like me for example.

Regards
Jules