Business Purchase Cancelled

Vector83

Hello,
Hoping for some advice please.
I run my own Ltd Company and in February I purchased 2 new machines at a cost of £40,000 from the same company.
I ordered via email, and paid by bank transfer in full.
Delivery was due around the end of March and everything was confirmed. 
Coronavirus then happened and my install date was pushed forward by 2 weeks to April 11th approx.
Then, April 11th came and went and I was told that due to the virus install could not happen, which I understood, and they then closed the business and said they don't know when it can be delivered now.
I've now asked to cancel the machine purchases and be refunded.
They have been very awkward about it, and are now claiming that I may have to pay "restocking charge from the manufacturer, delivery cost they incurred receiving the machine and also cost back to the manufacturer if they will take the machine back into stock".
They have offered to install the machine with an engineer from the manufacturer in the next 2 weeks, but I have said that is not possible due to the virus. My business has been open throughout as I work in mail order, but now there are only 2 staff members here as opposed to my usual 8. The reason I want to cancel is that the install date in unknown, my priorities have now changed and I don't have the time or requirement for the machinery now.
I am hoping the distance selling regulations may apply as I have not been to their premises or looked at the machines I purchased, it's all been via email.
Sorry for the layout, just trying to write down as much as I can to help, can anyone advise what my options are?

Vector83

To add, I was not sent any terms and conditions with the pro forma, and have not signed anything.

davidmcn

Distance selling regulations are for consumer contracts, so won't apply. The relevant terms will be those agreed at the time you ordered, so depends what they say about delivery timescales, cancellation and restocking charges.

Vector83

No terms and conditions were supplied, and a delivery date was fixed (twice) but subsequently cancelled.
No restocking fee information was ever given.
Thank you for the reply davidmcn.

DoaM

This is a B2B contract so the purchaser is expected to have relevant knowledge and have completed due diligence. If the contract terms are silent as to what happens in this situation, and no resolution can be agreed, then the only recourse is court. Given this is for a value of £40k then the claim would fall into the Fast track rather than the Small Claims track, therefore costs are not limited ... the losing party to the claim would (generally) be liable for the winning party's full legal costs (as well as their own).

Vector83

The charge they have suggested is £2869.40 + VAT, which comprises of the manufacturers restocking fee, they took over 24hrs to get this information, so I presume any knowledge or due diligence was not possible.
The dealer I purchased the machines from does keep some machines in stock, so there would be no way for me to know which they have in stock, or which they need to order into stock.
I was not made aware of a restocking fee should I cancel.

DoaM

We can't help you, sorry. There is no Consumer Right here. Whether you were able (or capable) of doing due diligence is largely irrelevant ... the point is that you should have done so - a business is expected to do so. Such due diligence would have lead to a) finding a different supplier (if you weren't given, or didn't like, the terms of contract), and/or b) paying by a method other than "cash".

Vector83

DoaM, I think you have the wrong end of the stick.
"Cash" was simply to imply I didn't take finance, credit card etc.. I am a VAT registered business with a turnover of over £1m.
'Whether you were able (or capable) of doing due diligence is largely irrelevant' - you made the point of this in your first reply, hence why I explained.
I have dealt with this supplier before for five other machine purchases, but things have changed and I've not experienced this issue before and simply needed help, not sure why you seem to be taking it so personally.
I've now spoken to a lawyer by phone who has advised me well, they have said it's not worth the cost of a lawyer, but it's fairly obvious I haven't signed a contract or agreed to these terms or any others.

DoaM

I absolutely do not have "the wrong end of the stick" ... I think it's more that you're not understanding my replies. I'm also not taking it personally ... I'm just making it clear how the law perceives such things.

It seems your lawyer has largely agreed with what I posted.

In terms of "cash" ... I guess you're on credit terms with the supplier whereby you pay their invoice in net 30/45/60/90 days (probably net 30 if your turnover is in the £1m range). Do you have copies of their previous invoices? Are there T&Cs printed on the back of the invoices? (It is common in business that the last document issued in a B2B transaction defines the final contractual T&Cs, if such T&Cs are printed on the document).

davidmcn

Depends whether anyone would think the delivery timescale was of the essence of your unwritten contract, entitling you to cancel if it went beyond a certain date.

Vector83

Thank you davidmcn, that's a very useful point.