Customers and payments

[ptf]

I have a couple of questions.
I run a flooring shop and I have a customer who is disputing his final invoice. To keep it short. The area needed some degree of levelling but as it was covered in carpet i provided a cost for supplying and fitting the wood floor, and a separate price up to a maximum amount to repair and make good. Customer signed the order and accepted this.
I have now completed the job and the additional work exceeded my maximum amount, with extra materials etc, however as I quoted a price I have stuck to this and any additional costs I am taking the hit on. He know says he wants to negotiate a new price on the additional work as he does not think it warrants it.
Surely he agreed there may be the additional cost and I have not charged him anymore than I quoted, so he should not be arguing the fact. Is his signature legally binding.

Second customer, ordered a special order floor, to her requirements, job booked in for over a month, calls yesterday to cancel, goods are in, fitting arranged for Monday and Tuesday. Unfortunately I did not take a deposit, the goods are non returnable. Is she liable to pay for the flooring, disregarding the 2 wasted days labour.
If I had taken a deposit am I legally entitled to not refund it , as it was a special order

Where do I stand?
Thanks in advance

 

[MOIC]

1. Yes. It's legally binding if you have carried out the work as stated in your quotation, which is the agreement / contract. ( An estimate is different )

2. What does it say on the agreement which was agreed and in particular your terms and conditions.

(Always take a deposit, lesson learned)

 

[Scott-Copywriter]

I have a couple of questions.
I run a flooring shop and I have a customer who is disputing his final invoice. To keep it short. The area needed some degree of levelling but as it was covered in carpet i provided a cost for supplying and fitting the wood floor, and a separate price up to a maximum amount to repair and make good. Customer signed the order and accepted this.
I have now completed the job and the additional work exceeded my maximum amount, with extra materials etc, however as I quoted a price I have stuck to this and any additional costs I am taking the hit on. He know says he wants to negotiate a new price on the additional work as he does not think it warrants it.
Surely he agreed there may be the additional cost and I have not charged him anymore than I quoted, so he should not be arguing the fact. Is his signature legally binding.

Second customer, ordered a special order floor, to her requirements, job booked in for over a month, calls yesterday to cancel, goods are in, fitting arranged for Monday and Tuesday. Unfortunately I did not take a deposit, the goods are non returnable. Is she liable to pay for the flooring, disregarding the 2 wasted days labour.
If I had taken a deposit am I legally entitled to not refund it , as it was a special order

Where do I stand?
Thanks in advance

Just for the record, this is only my opinion and doesn't warrant proper legal advice. If you wish to pursue these cases, then it may be worth hiring a solicitor for a few hours just to get some proper advice which is relevant to your circumstances.

Anyway, to answer each point:

1). If your customer saw the quote and signed the order, and you provided a service which fulfils all of the obligations of that order, then it is legally binding, yes. You may be able to win this one fairly easily by going through the small claims court.

2). I would imagine that the solution to this one depends on your terms and conditions. I don't think there's any law which makes the client personally responsible for any supplies you have purchased for a job (hence why businesses request deposits). If you had taken a deposit and stipulated that it was non-returnable in the event of a cancellation, then you would not be legally obliged to return it, no.

If there are no laws to help you, then you might just have to write this one off as a lesson learned and utilise proper deposits and T&Cs in the future. I'm not sure how specialist this flooring is, but it could be worth trying to sell it on at a highly discounted price to fit the smaller rooms of other people - a bit like a carpet remnant. Making even some of your money back would be helpful.

 

[oldoakey]

I think the first customer is trying it on IMO you did the job as quoted and even for less than you would normally charge - just goes to show you do a favor and you get kicked in the teeth.

For the second order did you at least get a signature or anything in writing on any sort of order form? It does not matter that you didn't get a deposit if you at least have a signed order that would show the customer to be at fault. This is breach of contract and you can sue for loss of profit.

Good luck

 

[ptf]

Thanks for all the advice.

The 1st customer has paid in full, after a little discussion.

Second customer, unfortunately we have no signed order, so I think we will be chasing a ghost with this one.
She has contacted me to say that I am able to send the order back as it is covered by distance selling, apparently trading standards have told so and that if we supplied a copy of our contract with our wholesaler she would take it further with trading standards.
I think she has just looked it up on the internet, as far as I am aware the distance selling does not apply to business to business and do trading standards open on a Saturday?.

We will see how far we progress with it, but I will now be re drawing my T&C and taking deposits in future, a lesson learnt.

 

[Scott-Copywriter]

Thanks for all the advice.

The 1st customer has paid in full, after a little discussion.

Second customer, unfortunately we have no signed order, so I think we will be chasing a ghost with this one.
She has contacted me to say that I am able to send the order back as it is covered by distance selling, apparently trading standards have told so and that if we supplied a copy of our contract with our wholesaler she would take it further with trading standards.
I think she has just looked it up on the internet, as far as I am aware the distance selling does not apply to business to business and do trading standards open on a Saturday?.

We will see how far we progress with it, but I will now be re drawing my T&C and taking deposits in future, a lesson learnt.

You're correct. Distance Selling Regulations don't apply to business-to-business transactions. Those laws have actually been replaced by the Consumer Contracts Regulations, but I doubt you'll have much luck there either. Perhaps worth a quick check though.

 

[MOIC]

Contact the flooring supplier and explain to them what has happened(with proof) and ask how they can help you in this situation.

It may be that they will take back the order, less handling and delivery charges, and issue you with a credit note for future orders.

This may be a better option, rather than trying to find a different customer for the same flooring, which I imagine will be difficult.

It's a case of reducing your losses, the best way you can.

Good luck.

 

[Jeff Nev]

Yes I am not sure Consumer Contracts Regulations would help but it may be worth a try?

And yes, lesson learnt so I doubt you will have this problem again! Tricky stuff..

Jeff

 

[kulture]

"Consumer Contracts Regulations" There is a clue in the name. It does not apply to Business to Business sales.

 

[ptf]

The supplier eventually agreed to take back with a handling charge, trying to get customer to pay, but not holding out much hope.

Have another non payer now, fitted the carpets four weeks ago, was supposed to pay fitter on completion, but she said she would rather drop money off into shop as she wanted to pay in cash.
Contacted her a few times now, eventually she got in contact with a lame excuse about waiting for a tax rebate which should have been made to her before the carpet was fitted. She paid by cheque, and predictably it bounced. She has now said she had an unexpected funeral to pay for, but the money will be in account by tomorrow, likely story, she has also offered to pay £40 per week in cash until account is settled, which will be mid march. I have said no as I know we will not get anywhere. I have told her to pay by credit card or cash by end of today as we are closing for holidays. But she has now gone silent.
She has been warned that if the account was not settled in full by end of trading the matter would be handed over to accounts dept who would take necessary action which could involve legal proceedings.
Just need advice on when to issue, due to the holidays etc. I know I need to send her a written letter of final demand detailing legal proceedings giving her 7 days notice, but as we will be closed until 5th should I wait until then or send the letter now with an extended due date, which would be 12th Jan.
Not hanging around giving chances, been down that route before which cost me a lot of money.

 

[oldoakey]

Get in touch with Thomas Higgins partnership they will send a solicitors letter out straight to your customer for about £2 cost to you. This can have the effect that things have just got legal and move the customer to pay without anything further needing to be done.

If I were you I would really tighten up my procedures, what you need is terms and conditions that the customer signs on placing an order, within these terms you could have a section where if the customer does not pay then you add £70 per letter plus interest each month at 8% above bank base rates. This does not mean that you will just that you can. Speak to a solicitor or gleam some from another retailer.