Is a contract with a cell phone retailer that has gone out of business still legally binding?

Question

I was with a cell phone retail company providing Cingular Wireless a year ago. I had only been with this company for about three weeks when they ceased business. I cancelled that plan with Cingular and opened a new account. Now, one year after the fact, the old company charged me termination fees in which it stated i was bound too in the contract.

My question is: Can a company that has ceased to do business still bind old customers to the contract. If so, is there a fair and reasonable time in which the company must seek charges (i.e. it took this company 9 months after the account was officially closed).

Thanks.

The company was an authorized retailer of Cingular products. Cingular cancelled the account for me and never mentioned any repurcussions I may get through the old contract.

This retail company ceased all business within the U.S.. They only have an e-mail address in which they can be reached and no phone number. Please see this site: http://www.pcsdivision.com and let me know if this clarifies the situation.

Thanks.

I will clarify a bit more. The fight is not with Cingular. The problem arose when the authorized retailer jumped ship and closed all stores. I had a phone problem and went to the mall and discovered that this company no longer had any retail stores. The company is trying to charge me $760 as a "chargeback" fee because of the benefit (promotional payment they receive for new customer) they lost when I closed out this account within the 180 day time period. However, Cingular assisted me in closing this account due to the nature of the circumstances.

Is a contract not a two-way agreement? If the company no longer exists and is not providing me the benefits that I am due then do I have a right to seek another company to assist me in those benefits. Of course they are going to lose a promotional benefit if they cease to work with their customer. Also of note, no mail or correspondence was given to me as to their closing. I found out through other sources.

Answer 1

After reading the further information you provided, the most useful thing I can say is that the answer to your question can be found in the language of your contract.

First, does anything in your contract say that that the retailer can collect a "chargeback fee" if you cancel your account within 180 days? If not, then I can see no reason why you should pay it.

If the contract does allow such a "chargeback fee," then the next question is does the contract require the retailer to do anything for you after you receive your phone (i.e. provide service, etc.)? If so, then you may have a good argument that their going out of business entitled you to recind any contract you might have had with the retailer. If all the contract required the retailer to do was to set up an account with Cingular, then you may be liable for the chargeback fee.

It all depends on the language of the contract.

Answer 2

Yes. The company you dealt with was a "authorized agent" for Cingular. The contract is based on service and your service was with Cingular not the company you got the phone and wireless agreement from.

Answer 3

Hi. Ive been in the wireless business for 10 yrs, I think I can help. The contact that you signed was not with the retailer but rather Cingular. (The retailer is an affiliate.) After Cingular and AWS merged, they (CWS) became the lagest GSM network anywhere. Theres loop holes like if you moved to an area that the provider does not provide service. Hope this helped, thanks

Answer 4

Your contract is with a company but also with cingular,
Most of these companies accounts are almost always bought, sold, or transfered to another company.

so yes the contract is still valid, The old company may not be doing any new contracts and closed thier office, but they also may well be holding all the existing contracts for thier profif for the life of them.

So it is a legal contract untill it runs out, or one or both parties agree to cancell.

So yes they can hold you to it, you should have asked and checked with cingular prior to cancelling the contract.

Answer 5

Yes because your contract was with Cingular and they are the ones who are charging for the termination

Answer 6

If the business entity (corporation) that went out of business still exists, the legally you are still under contract with it. The company would have had to cease operations and "died" - ceased existance in the eyes of the law in order for the contract to be invalid.

Answer 7

did the retail store go out of business or did the cell phone company go out of business? Your contract is with the cell phone company, which may have been bought out, and that still doesn't let you out of your contract. I would question the 9 month time frame.

Answer 8

pay as you bypass. i'm a college pupil so i do no longer want surprises on a telephone invoice which I had gotten whilst mine exchange into contract. I signed up for the internet on my telephone, however the invoice got here in for over $3,000. the stupid company did no longer definitely placed me down for what i wanted. that heavily sucked. i'm going to by no ability bypass on a plan lower back.

Answer 9

#1 post question in different topic area!

Answer 10

My advice is you should get an attorney's opinion.