Fixed Term Supply Contracts which suppliers won't honour

Darty

I am currently 9 months into a 2 year fixed term supply contract with a bulk lpg supplier and have a fixed price for the first 12 months. Due to the recent increase in lpg prices my fixed price is very attractive but as I have just tried to have a delivery of lpg my supplier has served notice to terminate my contract in 28 days!

Am I wrong in believing that the 2 year fixed term applies to us both or has anyone else experienced this?

I am sure that it is because my fixed price is now quite low that my supplier does not want to supply me.

Is there anything I can do to stop the contract being cancelled?

bernithebiker

Sounds dodgy.

If your supplier didn't hedge their risk when the contract was taken out, then yes, they will be hurting big time now as prices have leapt dramatically.


But regardless of whether they hedged themselves or not, they still have to honour your contract. Doing so may make them go bust however......

Cardew

You need to read the small print in the contract very carefully to see if there are exclusions that allow them to renege on the contract. Late payment? Failure to grant access to tank etc etc - any trivial matter.

If they are in the wrong, take them to the small claims court.