merckx Posted October 1, 2008 Share Posted October 1, 2008 Anyone know about business law? I've been working as self-employed direct sales agent, the company that supply the stock to me has gone into administration after a decline. The stock that they deliver to me remains their property until I sell it, I do have a contract with them. If I can find a breach of contact however insignificant would this make the whole contract invalid and give me a chance of retaining this stock without making payment for it. Thanks It's not exactly the ideal forum to ask questions like this, I've been to the CAB and they can't help. I've asked this question on a few business forums without getting any replies. I'm more than likely going to see a solicitor but it would be nice to know if I had any hope at all in proving their contract invalid before I pay for an expensive solicitor that I can't really afford. Quote Link to comment Share on other sites More sharing options...
grahamc Posted October 1, 2008 Share Posted October 1, 2008 If you have stock that you have not paid for, surely there is not much chance of getting out of that bill, especially if they are in administration. They will be starting to "hunt" down those that owe money. Quote Link to comment Share on other sites More sharing options...
Ark Posted October 1, 2008 Share Posted October 1, 2008 Have you got any paperwork? Verbal contracts don't hold the same kind of weight, but I suspect it would be very hard to claim "breach of contract" for them going out of business. Be very careful - you're trying to take possession of goods that you haven't paid for, so you could wind up on the wrong end of a fraud rap. Best to go to the administrators and make them an offer that's cheap to you, but means that they realise at least some of the stock value - saves them the effort/cost of chasing and retrieving those goods. Quote Link to comment Share on other sites More sharing options...
merckx Posted October 1, 2008 Author Share Posted October 1, 2008 Have you got any paperwork? Verbal contracts don't hold the same kind of weight, but I suspect it would be very hard to claim "breach of contract" for them going out of business. Be very careful - you're trying to take possession of goods that you haven't paid for, so you could wind up on the wrong end of a fraud rap. Best to go to the administrators and make them an offer that's cheap to you, but means that they realise at least some of the stock value - saves them the effort/cost of chasing and retrieving those goods. I do have a written contract. The administrators did offer the stock to me at a good price but I didn't acknowledge that I would take their offer for various reasons. I would've taken their offer if they had given an expiry date, two months later they sent me a letter withdrawing the offer with immediate effect. My contract was terminated and the stock was sold to another company subject to and on the terms set out in this contact. They're now demanding payment. I'm not trying to find a breach in contract because they went out of business but trying to invalidate the original contract I signed in 2005 if I can find part of this contract that was illegal or not adhered to. Quote Link to comment Share on other sites More sharing options...
Ark Posted October 1, 2008 Share Posted October 1, 2008 If you sat on their offer for two months without communicating with them or negotiating for delayed payment or anything, then they have every right to withdraw that offer - it was open for the majority of a business quarter after all, and they want their money. If you see it otherwise, you need to get legal advice, not the opinions of clowns on the Internet like me Quote Link to comment Share on other sites More sharing options...
Guest Budz86 Posted October 1, 2008 Share Posted October 1, 2008 Well, from what I can see if you find a clause that makes the original contract void then technically you shouldn't have been working for them, and therefore shouldn't have had the stock in the first place. I'd be very careful about how you approach this mate. As Ark said, you could be digging a hold Quote Link to comment Share on other sites More sharing options...
ellis Posted October 1, 2008 Share Posted October 1, 2008 If that stock has been sold to another company then it is now their property. You need to check if your contract will be honoured by the new purchaser. If you keep it you may land yourself in trouble. Quote Link to comment Share on other sites More sharing options...
marbleapple Posted October 1, 2008 Share Posted October 1, 2008 If I can find a breach of contact however insignificant would this make the whole contract invalid and give me a chance of retaining this stock without making payment for it. No. There are reasons but basically it has to be a serious breach to claim the contract is invalid. Also if there is no contract (i.e. you claimed frustration due to a serious breach) then you would not own the property anyway so its irrelevant. My advice to keep the stock is to have the term which states they own it checked out. It it makes it clear that they own it until payment is received etc then you are sunk but if it does not specifically state that they own it then technically uoi could argue that they gave you it. Quote Link to comment Share on other sites More sharing options...
merckx Posted October 1, 2008 Author Share Posted October 1, 2008 Thanks everyone for the advice, I didn't expect to get this many replies on a car forum. I might make this new company a reasonable offer for this stock. The original supply company would give me price reductions on stock that wasn't selling and every six weeks I could return all of the stock that was unsold, it doesn't seem right if I cannot get the same terms with the new company. Quote Link to comment Share on other sites More sharing options...
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