Telecomms contract query

[MrAB]

Help!

I've signed an agreement with a telecoms company to provide telecoms for my small business with 7 staff - 4 handsets and a telecoms app... anyway, it's a 7 year agreement so adds up to quite a lot of money.

During the sales call, the salesperson assured me that signing the agreement he put in front of me didn't mean I was committed and that I could cancel without penalty up to the point of installation. I was unwilling to sign anything so asked him to confirm that in writing and he did so, his email stated that "the agreement we have signed is not active until installation with no financial ties to us until this has happened"

This all happened on Tuesday but, after reading some Trustpilot reviews, I have lost confidence in this company so have changed my mind and don't want our telecomms from them.

I have now written to them to inform them that I wish to cancel the order (3 days after signing the agreement) and they have written back to say the order is cancelled and that they will arrange collection of the equipment.

OK, so I get the fact that I've signed an agreement and had I been getting the service I would be committed but given the fact nothing has been installed and they haven't delivered a service of any kind, what would be the view of any lawyers out there if they attempted to enforce the contract?

Any thoughts welcome.

Andy.

 

[MOIC]

First let them try and enforce the contract, then worry about it.

 

[japancool]

anyway, it's a 7 year agreement so adds up to quite a lot of money.

I can't answer the question about them enforcing the contract, but 7 years is inordinately long for a telecoms contract. 1-3 years is about the max you should be signing, even for a leased line, unless you have some wildly unusual requirements, which it doesn't sound like you do.

Does the contract you signed have anything in it regarding cancellation?

 

[kulture]

And does it have a clause saying that it cannot be altered except by a director of the company.....

 

[Mark T Jones]

They seem quite honest. Traditionally they would have told you it was a 3 year agreement hoping you wouldn't read the contract to see it was 7 years.

Rules on telecoms contracts have recently been tightened, so the likelihood is that they will cancel to keep you quiet

Technically they are probably within their rights to hold you to the contract unless you can demonstrate and dishonesty in the sale

 

[2020Lawyer2020]

I agree with Mark Jones above. Typically contracts will say other statements, emails, assurances do not count and as it is a contract between two businesses probably that would be enforced (so in future do not take that kind of assurance as likely to be valid). However in practice here it sounds like they will let you cancel.

 

[The Resolver]

his email stated that "the agreement we have signed is not active until installation with no financial ties to us until this has happened"

This doesn't mean that no contract was formed just that it wouln't be 'active' until installation It does not mean itself that you can cancel the installation taking place..

However, the fact that they have written to say they agree to the cancellation and will collect means that, once they collect, they could then have difficulty tryng subsequently to enforce. IN a sense ther eis now another agreement entered into whereby in return for you releasing the equipment back to them they will recognise the cancellation of the orignal contract. Howver all this is subject to the contract terms in full.

 

[MrAB]

This doesn't mean that no contract was formed just that it wouln't be 'active' until installation It does not mean itself that you can cancel the installation taking place..

However, the fact that they have written to say they agree to the cancellation and will collect means that, once they collect, they could then have difficulty tryng subsequently to enforce. IN a sense ther eis now another agreement entered into whereby in return for you releasing the equipment back to them they will recognise the cancellation of the orignal contract. Howver all this is subject to the contract terms in full.

Thank you for your comments. My frustration is that I fear that there has been dishonesty. During the sales call, I did actually tell the sales person very clearly that I wouldn't sign anything... he told me and 2 witnesses not to worry because even if I did, the contract wouldn't be binding until I signed another form at the point of installation so he pursuaded me that I could sign and still change my mind and that as long as they hadn't installed anything we could walk away. If that now isn't the case then I have definitely been misled. It was when telling that I could cancel, I asked him to back that up with an email and that when he sent the email above. To now find out that his email doesn't actually say what he was telling me in my office is also cause for concern.

Anyway, I spoke to him on Friday and he told me again that there won't be any penalties so I'm assuming he is good to his word.