B2B partner refusing to pay commissions

[Robert Groom]

One of our B2B partners has just sent me an email and I would like to ask the forum for advice on how to proceed as the commissions due are ongoing for as long as that customer remains a customer of this b2b partner.

The B2B partners email:
It has come to my attention that REDACTED have migrated an existing REDACTED client to a competitor recently. As initially agreed verbally we would only pay commission on the understanding you continued to bring all your new business to REDACTED and cease to trade with any competitor. You have not connected a single client for over 12 months and have proceeded to start to migrate clients away. Due to this you will not receive any commission as the verbal agreement has been breached.

My company has not taken business away from the B2B partner and put it with another provider as 12 months ago I took the decision not to sell any more of these services and so I went back to the B2B partner and said
"I can assure you that is not the case. Can you provide proof of this?"

The B2B partner replied: "I certainly can, I will not discuss this further you proceed how you wish."

Essentially I'm looking for legal advice on how to proceed with this matter as we invoice them around £250 per month.
It's not a lot I know but it's the priciple.

 

[intheTRADE]

It mentions there that something was agreed verbally, but do you have a written agreement with this company?

 

[Robert Groom]

There is no written agreement.

 

[Gordon - Commercial Finance]

There is no written agreement.

Well you will learn for the next time then.

Agree that the principle would rile regardless of the amount but a verbal agreement isn't really enforceable on either side. Unfortunate, but at least it wasn't an expensive lesson to learn.

 

[Robert Groom]

Yes, lesson learnt.

 

[SERC1204]

But, the B2B partner has admitted to the existence of such an agreement - surely that counts for something? A verbal agreement is as binding as a written one, it's proving a verbal agreement that is the issue.

 

[Robert Groom]

Well we do have email trails going back to early 2017 which shows us requesting commission statements, then us invoicing them for payment plus the funds being deposited into our account.
So I guess that may have some bearing?

 

[SERC1204]

I'm no legal expert, but as a starting point I would be inclined to believe the agreement exists and (on the face of you initial post) is being breached by your B2B partner. Of course, if they don't want to play ball the only way to enforce the matter is legal action.

 

[Mark T Jones]

What are the sums involved?

Is it really worth the time, money & effort going legal on what appears to be a 'who said what' argument?

 

[Chris Ashdown]

So you stopped using them last year and expect them to keep paying you for doing nothing

You could take them to court via small claims

 

[ComPropSolicitor]

Verbal contracts are binding. Emails and other correspondence would certainly go along way towards demonstrating that the contract was in place and was being performed by both parties. However, as always with small sums, the cost of bringing any action is going to negate the point of bring it in the first place.

 

[MOIC]

They said . . . .

You have not connected a single client for over 12 months

You said . . . .

we invoice them around £250 per month.

What have you invoiced for?

 

[Chris Ashdown]

Most commissions stop when you stop working for a company

 

[AlanJ1]

Most commissions stop when you stop working for a company

It totally depends on the contract.
If the contract was we will supply you with X customer who buys your services as long as they are buying they will pay X amount per month.
This shouldn't stop because they stop bringing new customers on-board?

 

[Chris Ashdown]

Try reading it again
Most commissions stop when you stop working for a company

 

[tony84]

If the company is earning from existing business it is not uncommon to keep on paying commission - not in our industry.