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Price increases in rolling or fixed term contracts

Discussion in 'Legal' started by apyds, Jun 14, 2018.

  1. apyds

    apyds UKBF Newcomer Free Member

    6 0
    I note that when it comes telecommunication and energy services, Ofcom have ruled that if there is a price increase during a fixed term contract the customer can choose to terminate the fixed term contract.

    However, is there anything similar with regard to other types of contract where we as a business have signed a fixed term rolling contract? For example with waste services or monthly cloud services? If they write to you and say "We are increasing our costs to you by 100%" after the first year of a two year contract, is there any way legally you can turn round and say "no you are not" and go to someone else. Would appreciate your views both if there are contract terms providing for an increase and if there are no contract terms providing for a price increase,
     
    Posted: Jun 14, 2018 By: apyds Member since: Sep 26, 2017
    #1
  2. kulture

    kulture UKBF Legend Staff Member

    7,618 2,077
    Customers, as consumers, are granted greater protections from contracts unfair terms and this kind of protection is for consumers only. A business is expected to be adult and read a contract before signing it. A business is expected to ensure that the terms and conditions are fair and do not allow unlimited increases for example. It is POSSIBLE but hard, to get a B2B contract overturned as unfair. But that would be on a case by case basis. Unless you can persuade a judge that you signed as a consumer then it is unlikely that you can do anything.
     
    Posted: Jun 14, 2018 By: kulture Member since: Aug 11, 2007
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  3. apyds

    apyds UKBF Newcomer Free Member

    6 0
    I know ofcom's rules apply to both small businesses and consumers. I appreciate UCTA 77 is unlikely to help. However, I was wondering whether any other legislation or case law has been introduced recently that allows consumers to opt out of a contract if the supplying party decides to increase the price.

    IMO; if no such legislation has been introduced then it certainly should.
     
    Posted: Jun 14, 2018 By: apyds Member since: Sep 26, 2017
    #3
  4. Mr D

    Mr D UKBF Legend Free Member

    8,990 908
    But are you a consumer? Or are you a business with a contract you agreed with enough to sign?
     
    Posted: Jun 14, 2018 By: Mr D Member since: Feb 12, 2017
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  5. kulture

    kulture UKBF Legend Staff Member

    7,618 2,077
    In general, if you signed the contract as a business then you have to adhere to it. As I said above, there are some case by case exceptions, but unless you give specifics the answer will remain that a business should read and understand contracts before they sign. There is no get out of contracts clause for stupidity.
     
    Posted: Jun 15, 2018 By: kulture Member since: Aug 11, 2007
    #5