We have a contract with a company which I have tried to cancel. They say we cannot cancel but I have noticed that the company who have written to me are of a different name (slightly). I have been on Companies House website and see that the original company is in liquidation - is the contract valid for the new company?
Thanks
2006-10-16 02:07:30 · 15 answers · asked by Elle B 2 in Business & Finance ➔ Other - Business & Finance
This depends on the terms and conditions applied to the original contract with the original company.
Most of the time you have a clause in there that terminates the contract if one you goes into liquidation.
So it's a case of read the smallprint.
2006-10-16 02:16:06 · answer #1 · answered by 'Dr Greene' 7 · 2⤊ 0⤋
Contract law and bankruptcy can get very complicated. The company that you are dealing with seems to be very familiar with the in and outs, and how to take full advantage of the law. If a large sum of money is involved, it might be time to go see a lawyer. If the amount of money is not worth fighting over, I would take the " so sue me" approach. That is a position that this company will understand, because you know they are doing the same thing to their creditors.
Typically if a company is being liquidated, the bankruptcy court has already made rulings and the assets are being sold to cover primary and secondary ceditors. I certainly would not pay any more money on any contract, because for all intents and purposes the cmpany no longer exists as a legitimate business entity.
2006-10-16 02:22:50 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Contracts are only binding on the original signatories unless there is a provision for transfer/assignment in the contract. However in almost all cases companies will attempt to secure for themselves the right to transfer/assign a contract, so if the Ts&Cs of the original contract were written by this other company then it is highly likely that the contract is still valid. However, this is only the case if the contracts really have been transferred or assigned to the new company - you should check if this was the case.
2006-10-16 02:24:32 · answer #3 · answered by Graham I 6 · 0⤊ 0⤋
It depends on the terms & conditions of the contract. A Liquidator can sell off any assets of a company to benifit creditors.
One thing that you might want to look into is if the Phoenix company has permision to trade with a similar trading style. Under section 216 of the Insolvency Act the new company would have to take leave of the court to do this. (Get court approval) If they have not then the directors of 'new co' are committing an offence that can be reported to the DTI leading to disqualification proceedings.
2006-10-16 05:42:14 · answer #4 · answered by Liquidator UK 1 · 0⤊ 0⤋
Hello there- this is not legal advice. But maybe some of the info could be useful to you.
You didn't specify a lot of things, in terms of whether the company owes you money, or you owe them money, etc. I believe that this contract is not null and void- but if the company owes you money, you may not end up being paid what they owe you. A judge will probably instruct this company as to whom they must pay, in order of priority. For example, first, they will most likely pay their employees. Secondly, they will probably pay creditors, etc.
So no, most likely, the contact is not null and void. I believe that the contract is still valid for the 'new' company. But as others have said, I would exhort you to contact an attorney about it. You can probably get free legal advice, or at least an opinion.
Good luck.
2006-10-16 02:29:04 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Your contract with company "A" is only valid if company"A" remains company"A". Unless the contract provides for transference, it cannot be transferred to anyone else without your approval.
You have no obligation toward any company that may be taking over a company that you have a contract with.
A contract is a "meeting of the minds" and for that to occur, there has to be clear rights and obligations between parties.
2006-10-16 02:18:35 · answer #6 · answered by Anonymous · 1⤊ 0⤋
No, if that was the case you would have a contract with the world and his wife. If the company is in liquidation you need to speak to the administrator.
2006-10-16 02:11:24 · answer #7 · answered by philipscottbrooks 5 · 0⤊ 0⤋
You have the right to cancell you did not sign a contract with the new company. Its like the companys who buy bad debts you can tell them to stuff it and they dont have a leg to stand on.
2006-10-17 01:04:49 · answer #8 · answered by GLYN D 3 · 0⤊ 0⤋
if the corporation had a telephone settlement with t-cellular, which nonetheless had 6 month to run, they'd not be fobbed off with all of sudden improvised exclusion clauses for them not getting paid, and could declare for the finished volume owing. a settlement is a legally binding checklist, who's words and prerequisites must be noted, otherwise there are outcomes. in case you doubt this or are uncertain of the type you stand, discover and connect a union that may characterize your hobbies, and propose you in this project.
2016-10-16 06:17:53 · answer #9 · answered by Anonymous · 0⤊ 0⤋
yes the contract is still valid by law
2006-10-16 02:17:50 · answer #10 · answered by tank 1 · 0⤊ 0⤋