One for the legal minds

One for the legal minds

Didn't find your answer?

I entered an advertising contract in an estate agent's brochure and paid a deposit. The company I made the contract with (not the estate agency) have failed to print the brochures over several months leaving myself, the agency and several other advertisers all in the lurch.

It now appears that company has ceased trading although I've had no communication from them or from any liquidators.

A new company trading from the same address (why am I not surprised?) has now started billing me for the next instalments and, apparently, promising the agency to produce its brochures. Again, no communication from anyone to say they have acquired the trade.

I would prefer not to throw good money after bad and am looking to cut my losses. Does anyone know where I would stand legally? Am I still bound to a contract in these circumstances? Leaving aside the issue of old company / new company, at what stage would the non performance of the contract (ie the fact that no brochures have been produced) be sufficient to render that contract null and void?

Many thanks in advance for any and all contributions.
Adam Reeves

Replies (5)

Please login or register to join the discussion.

avatar
By NeilW
28th Sep 2006 12:29

Breach of contract
Even if the contract has been novated from the old company the contract is in breach because of the failure to provide brochures on time earlier on in the contract.

I would suspect that the contract is dead on the 'they breached first' principle.

Thanks (0)
avatar
By wdr
27th Sep 2006 16:34

The legal answer will follow from the terms of your original con
but the likelihood is that at 'best' the old coy had the right to subcotract the work to another contractor[?the new company]. I would be very surprised if that binds you to pay anyone other than the original company.

Life is never simple, however. Suppose that the new company claims it is fulfilling your original contract?

Can they also show that they are the agents of the old company - unlikely given that it is in liquidation.

Can you argue that the terms have not been met at all, so owe no-one?

I would write a letter saying you have no contractual relationship with the new company, and require no services from them now or in the future.You may want specifically to refuse them authority to use your name or hold themselves out as being authorised to do so.

Thanks (0)
avatar
By AnonymousUser
27th Sep 2006 19:39

You can confirm that they are different companies
at Companies House
http://wck2.companieshouse.gov.uk/6a3dac3f3bc289b1a559a77f19be6098/wcframe?name=accessCompanyInfo
This will show name changes and liquidation details.
Your contract is/was with the old company which is a different entity and will have a different number from the new.

Thanks (0)
David Winch
By David Winch
27th Sep 2006 17:08

Do not pay!

Adam

The sale of advertising space in brochures and other publications which either fail to appear or are decidly sub-standard is a very common form of fraud.

Often the 'publisher' will refer to an 'order' from your firm which does not in fact exist.

Do not pay!

Contact your local Trading Standards office to see if they have had complaints about this publisher.

David
[email protected]

Thanks (0)
avatar
By adam.arca
03rd Oct 2006 13:49

Many thanks...
... to all contributors for the ammunition supplied. I had no intention of paying anyway in the circumstances and am going away to ponder on what to do next.

Thanks (0)