cancelled order - deposit lost - do we have to pay the remainder as demanded?

rosieglo

Hello
sad situation is that over a year ago my daughters wedding was cancelled. All arrangements had to be cancelled and letters written advising suppliers of the dress, venue,cake, photographer etc of the situation.

All suppliers very sympathetic and all kindly returning the deposits except the supplier of the dress.

A £500 (50%) deposit was paid and the dress was ordered by the shop and had arrived from the manufacturer. No alterations were made to the dress.

The deposit receipt did state that in the event of cancellation the full amount must be paid and the dress collected.

In our letter explaining the situation we asked if the shop could just keep the dress and sell it. We received a letter back (not from the business owner who sold us the dress originally as they had subsequently sold the business to someone else) saying that they understood but that we would still have to pay in full and collect the dress. We then sent another letter to say that my daughter was in severe financial difficulties and could not pay. We did not receive a reply.

A couple of months later we saw that in fact the new business owner had closed the shop as the business had failed. We thought that must be the end of the matter.

Now about six months after the shop closed my daughter has received a demand for the remaining £500 from a company we have never heard saying they have bought the business. They are not in the original premises so they must have just bought the stock etc. They are threatening legal action.

The business appears to have changed hands twice since the original order and deposit. Given that fact and the time lapse are they acting within their rights demanding money in this way? My daughter doesnt know what to do - she is no better off financially but she is very worried as she has never been to court or been threatened with legal action before.

frannyann

I would have thought your contract was with the orginal owner and these are just trying it on. However someone with better advice will be along shortly (or someone with a stupid comment may appear *wishes roll eyes smillie was still here* just ignore them)

pendulum

I don't agree with the above poster at all - the contract to buy the dress was between your daughter and the business as a legal entity, the contract remains between your daughter and the business no matter how many times the business changes hands. When you buy a business you normally buy its assets, debts, existing contracts etc.

I would say the law's pretty black and white on this, she has to legally pay the remainder. If they took her to court they would probably win and then you're looking at additional costs and interest etc. They are well within the timeframe to take action over this debt.

DVardysShadow

pendulum wrote: »

I don't agree with the above poster at all - the contract to buy the dress was between your daughter and the business as a legal entity, the contract remains between your daughter and the business no matter how many times the business changes hands. When you buy a business you normally buy its assets, debts, existing contracts etc.

I would say the law's pretty black and white on this, she has to legally pay the remainder. If they took her to court they would probably win and then you're looking at additional costs and interest etc. They are well within the timeframe to take action over this debt.

Agree. But you could always call their bluff over collection of the dress - and you could even try refusing it if it is not in absolutely A1 condition. Requires nerves of steel.

frannyann

pendulum wrote: »

I don't agree with the above poster at all - the contract to buy the dress was between your daughter and the business as a legal entity, the contract remains between your daughter and the business no matter how many times the business changes hands. When you buy a business you normally buy its assets, debts, existing contracts etc.

I would say the law's pretty black and white on this, she has to legally pay the remainder. If they took her to court they would probably win and then you're looking at additional costs and interest etc. They are well within the timeframe to take action over this debt.

Thank you, I wasn't sure, which why I pointed out someone with better advice would be along soon

As the shop is no longer trading could you afford to pay the balance, collect the dress and resell it yourself

Anihilator

The contract is definitly valid between the new owners and OP as an entity.
The only defence here is they have a duty to minimise their losses (i.e try and resell the dress). However if its been in the stock and not purchased then this has been done and entitled to pursue you for the rest of the cost.

As Dvardyshaw points out there is a small chance you could try and collect the dress and get out on a technicality but I don't fancy your chances here given you cancelled the contract in writing as the shop can show there was no expectation you still wanted it.

Tozer

Anihilator wrote: »

The contract is definitly valid between the new owners and OP as an entity..

You don't know that as you don't know whether it is only the name which has been purchased by a separate limited liability company in which case the contract is not enforceable.