Payment in Advance and Contract

[RelyOnIT]

We deal with a large corporate and have done for a number of years. Each year we invoice the client for 12 months maintenance in advance. However we do not issue a new contract each year and they don't ask for a new contract. If they were to suddenly decide to cancel our services, would the fact that they have paid a 12 month contract in advance be seen as acceptable to prove they have accepted our services for the next 12 months or do I need to get a signed contract? Also they do supply us with a PO with the dates for the maintenance detailed on it.

 

[kulture]

It would clearly be much better for both parties to have a signed contract defining the terms between you. You currently have a contract of sorts. The Purchase order is likely to be the basis. As it is a large company you may well find that their Purchase Order will have standard terms and conditions and you will probably have got a copy initially. Without seeing these terms it is impossible to answer your question.

 

[Gecko001]

This might come under what is sometimes called "the battle of the forms". This means that it depends on what terms and conditions are issued last. If you have sent an invoice with your terms and conditions on it and they have then sent you a PO with their terms and conditions on it and you have not disputed those terms then the terms and condition in the PO are what stands as far as I know.