Contract dispute

Original Post:

matadon16

Free Member
Jul 3, 2022
7
0
Hornchurch
A company has not preformed on an agreement.
I can document where I tried to get the agreement in writing and signed.
The agreement was to get the company on to a preferred suppliers list and they would pay my company 5% of each tender they won.
They paid my company 5% of the tender award on 6 occasions
They then won two jobs both around 2M and say that the earlier payments where discretionary and have brought in the big gun lawyers. Below is a statement from their lawyer in a small claims action

Whilst the Defendant agrees that the Claimant helped to facilitate an introduction, the Defendant denies that there was ever any agreement between the parties that would establish an enforceable right to commission (both in relation to Shannon Grove and any other projects). The Defendant's position is that any payment that was discussed was always strictly on the basis that payments would be in the Defendant's sole discretion (to be exercised based on, for example, the profitability of the scheme). The Defendant points to other speculative claims made by the Claimant to support the notion that the Claimant's claim is opportunistic


I have a good handle on this but it was agreed in a meeting and the defendant paid all the invoices consecutively and paid the agreed 5% of the award value..

With the elements that form a contract I understand whether verbal or written. Their conduct makes them complicit of forming a contract

On all my company’s invoices is written ;
As agreed 5% payment on ongoing invoiced work carried out on behalf of the contracting company ( I have left the name out)

On one of the awards of 5% the defendant did some work at a property I own and deducted the following amount and asked me to invoice the rest
Invoices amounted to
3500 +vat
1078 + vat
=
2974 was billed for works carried out
The contract award was £150,000.00
In a witness statement to the court they are saying that the agreed figure was 3 % based on discretion.
Please someone could they tell me am I going mad and how they can stand in a court and say that this breaks the chain of causation?

My company’s claim is confirm that there is an existence of a contract for 5% and for damages an owed sum left on the contract that being £1881 plus interest @ 8%
My claim has to be enforceable on the above basis of what was damaged and the sum amount left to pay on the contract… right?
I am trying to establish a contract then once I have the Precedence then I can sort a winding up petition on the company without fear of incurring, a cost order in the Insolvency courts..
an obvious cheaper route …
An interesting case of greed and enrichment …
 
What does it say in your signed contract?
 
Upvote 0

matadon16

Free Member
Jul 3, 2022
7
0
Hornchurch
What does it say in your signed contract?
The contract was based on a verbal agreement which was then formalised by the company’s conduct.. i then wrote the agreed commission on my company’s first invoice and this was accepted by the company. Recurring invoices with the same agreed commission ongoing stated and the company agreed payment on each invoice. But the first invoice was agreed so the company agreed my terms moving forward and have never disputed the terms on any of my company’s invoices even the invoice where they make claim in proceedings that it was discretionary and they paid 3%. With the deductions of at £2964 added to the 3 % it calculates at 5%.. the question is why would you carryout work at £2964 then deduct this from the award value of there was not a agreement in place. They cannot say they did this as a favour becuse they sent me a breakdown on their letterhead.. I even have the Tradesmans who worked for them confirming he was paid by them directly..
 
Upvote 0

matadon16

Free Member
Jul 3, 2022
7
0
Hornchurch
He first confirmed in a WhatsApp message that it wasn’t simple to agree as they had not successfully tendered any awards. This is what I wrote
Morning Chris... I think we should have a convo as usually when I am putting someone forward I would have agreed something before hand but because Neil asked me I just let it slide. No disrespect but I’m sure that’s what you would do normally when entering something new. I’m just conveying that your pricing a job and I don’t know what is being built in.

He wrote
No problem I agree. To be honest it is not that simple to agree something at this stage due to the fact that we haven’t had any works as yet and I have personally spent at least 2ks worth of time myself in pricing things up. We need to work out a plan forward as we don’t want to waste all of our time. Speak soon

That was in 2018

In 2020 I wrote
Chris hi mate.. Further to the legal problems I have encountered I am just going out to people I have arrangements with and no signed agreements. Please do not take this the wrong way but I need to put this in place. We agreed on a 5% basis so the agreement should be to that effect. I need to know if this is okay with you and I can draw up something short and to the point.. Thanks

He wrote
Draw up what mate confused ? Call me tomorrow for a chat

The company did not start being awarded jobs from 2019 when they priced them and the awards where made in 2020 so that’s the time gap of you was wondering why anything wasn’t put in writing .

From the last comment I went into the company’s offices during covid and agreed the 5% commission based on the award contract not on the profit but that was his suggestion not mine I wanted the fee based on the profit.

I have a witness who can confirm this and has made a witness statement backing this up because he was at a meeting with the company were the commission fee was discussed and how it would be paid on every award that was successfully tendered.

There are more thread but I don’t want to make this complicated..

I have a contract based on
1. An offer
2.Acceptance
3. Consideration

I believe that it is only the above I need to make my invoices enforceable as I have written on them all the following

As agreed 5% payment on ongoing invoiced work carried out on behalf of the client ( I have left out the company’s name and replaced with client)

He agreed the above terms in the first invoice and paid on those terms so any other recurring invoice stating the same would enforceable.

So in fact by him confirming the first invoice and paying fulfils the contract / agreement… am I right !! Yes
If he was unhappy with what was stated on the invoice he had the opportunity to dispute it but never did until the got bigger awards..
It was a bad deal made by him by not putting things in writing.
 
Upvote 0

Newchodge

Moderator
  • Business Listing
    Nov 8, 2012
    22,704
    8
    8,016
    Newcastle
    You have a contract if there were all of the following:
    Offer
    Acceptance
    Consideration.

    None of that has to be in writing.

    So put in your breach of contract claim.

    I am not sure what you are seeking advice about.
     
    • Like
    Reactions: ethical PR
    Upvote 0

    fisicx

    Moderator
    Sep 12, 2006
    46,836
    8
    15,469
    Aldershot
    www.aerin.co.uk
    As there is nothing agreed in writing you may struggle to win your case in court.

    Conducting business via WhatsApp isn’t a good way to do things.

    Just because you added 5% to a couple of invoices doesn’t mean you have established a precedence.
     
    Upvote 0

    matadon16

    Free Member
    Jul 3, 2022
    7
    0
    Hornchurch
    As there is nothing agreed in writing you may struggle to win your case in court.

    Conducting business via WhatsApp isn’t a good way to do things.

    Just because you added 5% to a couple of invoices doesn’t mean you have established a precedence.
    No it’s not a good way but the matter is the invoice stretch over several projects one after the other so I do believe there is a precedence and it was the defendant who made the order on what to invoice and the terms of the payment were on every invoice which were never disputed
     
    Upvote 0

    fisicx

    Moderator
    Sep 12, 2006
    46,836
    8
    15,469
    Aldershot
    www.aerin.co.uk
    No it’s not a good way but the matter is the invoice stretch over several projects one after the other so I do believe there is a precedence and it was the defendant who made the order on what to invoice and the terms of the payment were on every invoice which were never disputed
    Do you have the funds to fight them in court? Because that’s the only way this is going to be resolved.
     
    Upvote 0

    fisicx

    Moderator
    Sep 12, 2006
    46,836
    8
    15,469
    Aldershot
    www.aerin.co.uk
    My thoughts are you didn’t get the deal in writing and you will struggle to win the case in court. Invoices don’t prove agreement, they just show what was paid. The client is now disputing the commission due and will probably argue the invoices were paid in error.
     
    Upvote 0

    Latest Articles

    Join UK Business Forums for free business advice