- Original Poster
- #1
I've got myself into a bit of bother with a contract I signed a few months ago, and I probably need to see a lawyer.
I originally planned to have fibre put into my premises, and I signed the contract. I was told initially (verbally) that it would only be a month before the installation, then about 3 months went by, and they finally got a date for me.
Between then and now, the business performance has continued to worsen, I wouldn't be able to afford the fibre connection until next year (at least) when my existing broadband contract expires, and I'm attempting to sell the business, or even close it down (which will happen in a year's time if I don't sell it due to a break clause in the lease).
I have been stalling for time, and the fibre connection has not been installed yet, they have done a couple of site surveys (that took them about 20 minutes each time), and they keep asking me when to install it. They have said that if I don't agree to put in the fibre by the end of the month, they will bill me for the entire contract length, which is over £14,000.
They have quoted me a clause in the contract
As I said, I have got myself into a muddle, and I'm struggling as it is with my business.
Thank you.
I originally planned to have fibre put into my premises, and I signed the contract. I was told initially (verbally) that it would only be a month before the installation, then about 3 months went by, and they finally got a date for me.
Between then and now, the business performance has continued to worsen, I wouldn't be able to afford the fibre connection until next year (at least) when my existing broadband contract expires, and I'm attempting to sell the business, or even close it down (which will happen in a year's time if I don't sell it due to a break clause in the lease).
I have been stalling for time, and the fibre connection has not been installed yet, they have done a couple of site surveys (that took them about 20 minutes each time), and they keep asking me when to install it. They have said that if I don't agree to put in the fibre by the end of the month, they will bill me for the entire contract length, which is over £14,000.
They have quoted me a clause in the contract
"ARTICLE 4. TERM - TERMINATION 4.A The initial term of this contract is 5 years plus the installation lead time ("Initial Term"). This Agreement shall become effective on the date upon which it has been signed by both parties and shall continue in effect for the Initial Term. The installation lead time is defined as the time from the contract being signed until the service is installed. Thereafter, it shall remain in effect until terminated by either party upon at least ninety (90) days’ prior written notice to the other party.
4.B If a service is cancelled prior to the end of the active term then the rental for the remainder of the active term is due as a cancellation charge."]
I also quote another termination clause from the contract:4.B If a service is cancelled prior to the end of the active term then the rental for the remainder of the active term is due as a cancellation charge."]
ARTICLE 3. TERM - TERMINATION 3.1 This Agreement shall become effective on the date upon which it has been signed by both parties and shall continue in effect until terminated by either party upon at least ninety (90) days’ prior written notice to the other party. As the Master Services Agreement covers the general code of conduct this can't be terminated while sfdfsdfd is providing the client with one or more services. However, this does not affect the client's rights to cancel individual services which will be outlined in the supplementary terms and conditions for the respective services. All services provided by sgfdsgfdg will automatically renew at the expiry of the respective minimum term for one year unless written notice is given prior to the expiry of the minimum term.
3.2 Either party may terminate this Agreement in the event of a material default by the other party, provided that:
a) the non-defaulting party gives the defaulting party at least thirty (30) days prior written notice of the alleged material default and of the notifying party’s intention to terminate, or seven (7) days prior written notice in the event of the failure to make any payment due hereunder; and
b) for events of material default that are capable of being remedied within the period specified in paragraph 3.2(a) above, the defaulting party has not remedied the alleged material default within said period; and
3.3 For the purposes of Article 3.2, “material default” shall consist of any of the following:
a) a party’s breach of any of the material terms or conditions hereof including the failure to make any payment when due;
b) insolvency, bankruptcy, receivership or dissolution or any similar proceedings is initiated by or against a party or any of its assets or a liquidator, receiver or trustee in bankruptcy is appointed in respect of any of its assets; or
c) the execution by a party of an assignment for the benefit of creditors or any other transfer or assignment of a similar nature (it being understood that the execution of any third party financing agreement(s) shall not constitute an event of default hereunder).
3.4 If the Customer cancels the Service, in whole or in part, or if this Agreement is terminated as a result of Customer’s default, prior to the expiration of the Initial Period, Customer shall pay or reimburse sgfdsfsdf, upon demand, for any costs or expenses incurred by sfsdfdsfs as a result of such cancellation or termination, including without limitation, any fees or charges levied upon Between the Lines Communication Limited by the local access service provider.
3.5 The expiration or termination, for any reason, of this Agreement shall be without prejudice to the rights of either party against the other which have accrued on or prior to such termination
I prefer to resolve this situation in amicable way. I would understand if they said we want the connection fee (which is pretty hefty as it is (£2,000) as a cancellation fee. I know they needed permission from my landlord before they could do any work due to cables being run up the building, and drilling a hole or two into the building for the cables to come into the building. I haven't asked them, and I know the fibre was initially contingent on my LL agreeing to the works. 3.2 Either party may terminate this Agreement in the event of a material default by the other party, provided that:
a) the non-defaulting party gives the defaulting party at least thirty (30) days prior written notice of the alleged material default and of the notifying party’s intention to terminate, or seven (7) days prior written notice in the event of the failure to make any payment due hereunder; and
b) for events of material default that are capable of being remedied within the period specified in paragraph 3.2(a) above, the defaulting party has not remedied the alleged material default within said period; and
3.3 For the purposes of Article 3.2, “material default” shall consist of any of the following:
a) a party’s breach of any of the material terms or conditions hereof including the failure to make any payment when due;
b) insolvency, bankruptcy, receivership or dissolution or any similar proceedings is initiated by or against a party or any of its assets or a liquidator, receiver or trustee in bankruptcy is appointed in respect of any of its assets; or
c) the execution by a party of an assignment for the benefit of creditors or any other transfer or assignment of a similar nature (it being understood that the execution of any third party financing agreement(s) shall not constitute an event of default hereunder).
3.4 If the Customer cancels the Service, in whole or in part, or if this Agreement is terminated as a result of Customer’s default, prior to the expiration of the Initial Period, Customer shall pay or reimburse sgfdsfsdf, upon demand, for any costs or expenses incurred by sfsdfdsfs as a result of such cancellation or termination, including without limitation, any fees or charges levied upon Between the Lines Communication Limited by the local access service provider.
3.5 The expiration or termination, for any reason, of this Agreement shall be without prejudice to the rights of either party against the other which have accrued on or prior to such termination
As I said, I have got myself into a muddle, and I'm struggling as it is with my business.
Thank you.
