Liability to honour 'quote/proposal' for website

powerful_Rogue

JCR1987 wrote: »

Ok, so if it may depend on what was said, via email or verbally - my outlook is that we never positively gave any instruction. Yes, potential formats for the site were discussed, opinions were provided on preferences for the site.

It seems there are a few factors going against us (all before i started unfortunately):
- The conversations that went beforehand to discuss the possible site requirements;
- Our approval of potential design styles;
- The commencement of payments based merely on a quote (a quote which was way overpitched for what we require).

When i came into the business and saw the potential cost of the proposal, my first reaction was to baulk at what was being proposed and suggested we look around before committing to anything. At this stage i was unaware that the standing order had already been set up a few months prior.

I'll take a look through the email trail to see if there's anything else i have missed, but think i'll be seeking a bit of legal advice on our obligations one way or the other. If it works out we have to stick with the proposal then i'll have to try and find an amicable resolution

Sounds like a contract to me.

naedanger

JCR1987 wrote: »

... i'll be seeking a bit of legal advice on our obligations one way or the other.

Seems a good idea, assuming the amount of money involved is significant.

If it turns out you have agreed a contract you may have other options.

steampowered

It is perfectly possible to enter into a legally binding contract by email or by your conduct. You don't need a signed piece of paper.

It seems to me that the fact you approved potential designs and the fact you paid them for 7 months indicates very strongly that you did agree to a contract.

I do not think your argument that the finance manager set up a mandate by mistake will negate this. Someone must have told him to set up a mandate. Also, if it was a mistake, you would have cancelled the mandate after 1 month not after 7 months.

What you should check is whether this company have done what they said they would do in their proposal. If their work is inadequate, you can ask them to fix it.

JCR1987 wrote: »

Thanks guys.

Surely to commission the work to go ahead the wording of the email should be an instruction - not just opinion that we were happy with the design they mocked up on the proposal?

This is not necessary. It is perfectly possible to form a legally binding contract through the exchange of emails. A judge would only look at what a reasonable observer would have concluded, as to whether he would conclude the parties has reached a final agreement or not.

I think all the company would have to demonstrate is that they were instructed to begin work. An instruction to begin work would presumably be acceptance of their proposal.

JCR1987

But why would they add in a signature line at the end of their proposal document if it was to be assumed that the mere sending of a proposal was an agreed contract to work?

The final paragraph in the proposal reads:

We are pleased to be able to offer you this quotation and hope to have the privilege to work with you again.

Proposal Agreement signed by Client:.......

Surely by this measure, every proposal they provide is guaranteed work for them unless disputed and they may as well remove this line from their proposal document?

powerful_Rogue

JCR1987 wrote: »

But why would they add in a signature line at the end of their proposal document if it was to be assumed that the mere sending of a proposal was an agreed contract to work?

The final paragraph in the proposal reads:

We are pleased to be able to offer you this quotation and hope to have the privilege to work with you again.

Proposal Agreement signed by Client:.......

Surely by this measure, every proposal they provide is guaranteed work for them unless disputed and they may as well remove this line from their proposal document?

But it was obviously agreed thus the 7 months worth of payments that have been made.

A signature isn't always required for a contact to be formed. When I had my bathroom and kitchen installed, I was sent a quote and made payment - No signature. When i've taken out various mobile phone contacts, no signature.

Seek legal advice like you have already stated, but don't be surprised when they say it is a contact.

agrinnall

Any response to my previous post #6?

daytona0

OP wrote:

The 7 months payments were set up in error by the finance manager who 'presumed' a signed agreement had separately been returned.

So you are publicly stating that your finance manager has made an error in setting up a monthly payment?!

Despite the fact that it has taken me all but 2 minutes to find your employer?!



Give me strength!

On a more practical note (well, pointing out the above is very practical!):

- If you are a subordinate then let your director/finance manager sort it out.

- If they are your subordinate then give FM a reprimand and follow advice given (oh and it almost certainly IS a contract, but by all means hire a solicitor and pursue it! We aren't legal experts I'm afraid)

unholyangel

JCR1987 wrote: »

But why would they add in a signature line at the end of their proposal document if it was to be assumed that the mere sending of a proposal was an agreed contract to work?

The final paragraph in the proposal reads:

We are pleased to be able to offer you this quotation and hope to have the privilege to work with you again.

Proposal Agreement signed by Client:.......

Surely by this measure, every proposal they provide is guaranteed work for them unless disputed and they may as well remove this line from their proposal document?

Because it makes things a lot easier should you ever need to go to court that you can (with relative ease) prove the agreed terms of the contract.

Not having it doesn't mean there is no contract. It just means that legal action would probably cost a lot more as those details would need to be worked out. They'd need to scrutinise to see if a contract had been agreed and if so, on what terms.

Which is why naedanger was saying it would depend exactly what was discussed - because anything said could affect what the terms of the offer or contract were. If all required elements were present then you have a legally binding contract.

steampowered

JCR1987 wrote: »

But why would they add in a signature line at the end of their proposal document if it was to be assumed that the mere sending of a proposal was an agreed contract to work?

The final paragraph in the proposal reads:

We are pleased to be able to offer you this quotation and hope to have the privilege to work with you again.

Proposal Agreement signed by Client:.......

Surely by this measure, every proposal they provide is guaranteed work for them unless disputed and they may as well remove this line from their proposal document?

I think the point is that there are multiple ways to accept a proposal.

The clearest way of accepting would be to sign but that is not the only way. You can also accept it by email. Or you can accept it by instructing them to begin work if a reasonable observor would conclude that your instruction is on the basis of the proposal.

It is only "guaranteed work for them" if you accept the proposal, but it is possible to accept their proposal by your conduct if you asked them to proceed.

It all comes down to whether a judge would think that reasonable observor would conclude that your company accepted the proposal.

JCR1987

Ok, it's a bit clearer now I think.

For clarity, we're not trying to wriggle out of out obligations, we merely felt that the proposal was well over-pitched for what we required. If indeed we are forced to maintain the agreement then we will have to bite down and take it.