Phone Service

pauljg1

Hello all,

i need bit of advise please.

I run a small business and was working out of retail premises. I left the premises around 4 months ago to work back from home to save money within that time i cancelled by phone supplier.

I went through the cancelation process that they advised me they disconnected my telephone line on the day i left.

When i got the phone service put in i was on a 3 year term and only used it for a year as i couldn't anticipate i would have to go back and work from home at the time.

I was under the impression that the 3 year term is only applicable if i either move to another retail permises and i take the supplier with, obviously being a business phone supplier i cannot do this.

Without any mentioned until last week which was 4 months after i left they are now chasing me for 2k of cancellation fees as they say i broke the contract, i was on a 5 year term with the electricity suppliers and any contract made it so i could use another supplier whilst im at the current premises....I assume the same with the phone..

So my question is have the phone supplier Chess telecom got a case of casing this money, keeping in mind they never mentioned a cancellation fee at the time and more so i find it quite odd how they feel a contract term is regardless if your business cannot afford to stay in retail premises anymore making them surplus to requirements..

I understand i agree to their terms but i very concerned that i may have to pay this
:mad:
Thanks

paddyrg

They have connection/fixed costs for providing you with the service, so they plan their equipment and finances etc around the length of term in the contract. You could probably have had the option of shorter terms at a higher rate, so assume cost was a part of the reason why you signed a 3yr/5yr deal. The supplier may even lose money in the first year of the term against future profits in the contract period. It is not their fault you moved property, they cannot run your business for you, you owe them for what you agreed, and if that is for the remainder of the contract, then it isn't so much a cancellation fee as just what you said you would pay them.

pauljg1

Are they not obliged to even mention it when i cancelled the contract with them, i left my office because i couldn't afford the rent (due to the rent going up) though if i knew this was the case it would of been cheaper for me to stay there, i had already been with them for over 1 year

paddyrg

I haven't seen the contract you signed of course, but if it says it is a 3 year contract and doesn't say you can cut it short for any reason without penalty, I think you're out of luck. You could appeal to them that you'll pay 50% for a full and final settlement, see if they'll take it, and you split the loses?

Premier_2

pauljg1 wrote: »

...I was under the impression that the 3 year term is only applicable if i either move to another retail permises and i take the supplier with, obviously being a business phone supplier i cannot do this....

So why did you think that?
What does your contract say about cancellation of the contract?

pauljg1 wrote: »

Are they not obliged to even mention it when i cancelled the contract with them, ...

No, they are obliged within the terms of the contract you agreed to initially to specify if and how the contract may be terminated early.
What does it say about early termination?

Lincoln11

It is essential to understand the terms and conditions while selecting a business deal. Search in the internet and find experts and discuss your problem with them.As phone systems are essential for business set ups it is better to get the problem fixed.

InsideInsurance

In B2B relationships the law is much more equal on all parties than it is in B2C situations, it rightly or wrongly assumes that all in business are big boys and girls who should know what they are doing.

As has been said, you really should have read your contract on cancellation prior to cancelling it and I think it was very nieve to think that you could simply walk away from a commitment without any financial reprocussions. Whilst you may have moved office because finances are tight that really isnt much of their concern. You haven't declared the business bankrupt and so as far as they are concerned there must still be some viability and so worth pursuing the money you agreed to pay them.

What is your legal entity? ie are you a sole trader, a Ltd company?