Is MBNA within its rights to ask me to do this ?

never-in-doubt

Degenerate wrote: »

Thankfully, the company that I am a director of has never come across this "contract to negotiate" situation.

well straight away that tells us all that you are a one man band and have no employees etc - if you did then you'd retract the above statement.

Obviously being a director doesn't quite have the same standing, I could go and be director for 100 companies tomorrow - so what! doesn;t mean I know all the laws does it - nor will you.

payless

never-in-doubt wrote: »

The account is not in default; if it was then pointless paying and sit out 6yrs. Same result but cheaper. .

depends on what defination of default you use

first page on google search ...

What is a credit card default?
A credit card default is where an individual breaks a rule within their credit agreement. This is generally when a payment has been missed.

never-in-doubt

NickX wrote: »

Right. The OP asked :




Now many people here appear to have taken this to mean a moral right and have answered YES they are.

Personally (and maybe I am in the minority here, don't know) morals do not apply in a commercial situation, morals are too subjective and can only refer to a legal right. In answer to whether MBNA have a legal right demand this, the answer is NO.

To the OP, please can you say whether you wanted to know about moral rights or legal rights ?

Nick - totally agree. That is also how I answered the OP question, moral rights were never mentioned prior to the hijackers.....

never-in-doubt

payless wrote: »

depends on what defination of default you use

first page on google search ...

late payment markers sit for 3yrs. so internal default (not legal default as you think i meant) still has adverse effect for 3yrs minimum. Therefore if you owe 10 grand why bother, just sit it out for 6yrs! thats my point..... you could pay some for 3yrs then get into probs again and the debt could be therein total for like 20 years! ridiculous.

a default is a default - simply means breaking an agreement.

NickX

Degenerate wrote: »

So how do contracts get written? I mean, since you're not allowed to negotiate without a contract already being in place? That would be a bit of a conundrum to solve.

Thankfully, the company that I am a director of has never come across this "contract to negotiate" situation.

Well the company that I am a director of pays solicitors to draft contracts. This would need to be funded by the client, therefore an initial contract needs to be in place before a further contract can be drafted.

ILW

Strange as it may seem, many businesses still operate on a trust basis where no written contracts are involved. We agree a price, shake hands do the job or supply the service and then get paid. I have to say it all works pretty well in general. A lot of the problems arise when Lawyers see the chance to make a few quid and start telling people they do not have to pay/ can sue, etc on some technicality.

never-in-doubt

ILW wrote: »

Strange as it may seem, many businesses still operate on a trust basis where no written contracts are involved. We agree a price, shake hands do the job or supply the service and then get paid. I have to say it all works pretty well in general. A lot of the problems arise when Lawyers see the chance to make a few quid and start telling people they do not have to pay/ can sue, etc on some technicality.

You'll find that verbal contracts do exist and are legally enforceable as well. Old term used to be 'gentlemans agreement'

Degenerate

NickX wrote: »

Personally (and maybe I am in the minority here, don't know) morals do not apply in a commercial situation, morals are too subjective and can only refer to a legal right. In answer to whether MBNA have a legal right demand this, the answer is NO.

Reversed your position again. As you already admitted before, the answer is YES. They have a legal right to demand whatever concession they want. OP has a legal right to tell them to get stuffed. They have a legal right to decline the arrangement to pay and pursue the matter through the courts.

NickX

ILW wrote: »

Strange as it may seem, many businesses still operate on a trust basis where no written contracts are involved. We agree a price, shake hands do the job or supply the service and then get paid. I have to say it all works pretty well in general. A lot of the problems arise when Lawyers see the chance to make a few quid and start telling people they do not have to pay/ can sue, etc on some technicality.

Whilst I completely agree that this is the case, if you do not have a contract in place, complete the work and the client does not pay, what evidence do you have to take them to court ?

As NID says, a verbal contract is legally binding but it is going to be very difficult to enfirce without anything in writing.

ILW

never-in-doubt wrote: »

You'll find that verbal contracts do exist and are legally enforceable as well. Old term used to be 'gentlemans agreement'

They may be legally inforceable, but difficult to prove. Again another opportunity for the lawyers to make a few quid.