Contract Law Solicitors in UK.

Contracts with Customers and Suppliers

You should not even think of starting a business without considering a professionally drafted contract or standard terms of business. It is your main protection against bad or unscrupulous customers. Although in law a simple telephone call can constitute a contract, and therefore would be binding, you would be foolish to rely on unrecorded and unsigned agreements, even to vary the terms of your standard contract.

A written contract not only enables you to record incontrovertibly what you will do for a customer, it also gives you the opportunity to state how important matters, like method and timing of payment, or settling disputes, will be handled. But a contract can be a millstone around your neck if it contravenes one of the many laws forbidding 'unfair' contract terms.

Professional advice should therefore always be sought. This article guides you through the principal hurdles in constructing your contract, and using it. It also advises you on some of the issues concerning the buying of goods and services for your firm. As always, in most situations sound advice in the planning stages pays dividends.

Checklist

* Do you have a contract or written terms of business?
* Do you confirm in writing all telephone agreements or changes over the phone to written terms?
* Are you relying on a copy of somebody else's terms which may be defective, inappropriate or illegal?
* Do you know who you are really making the agreement with?
* Do you record the registered company number of the customer or supplier on your agreements?
* Does your contract exclude liabilities for, say, your own negligence?
* Do you know that you - and your customers - have rights concerning the acceptance and rejection of bought goods?
* Do you always read your supplier's terms of business, including the small, hard to read grey print on the back of their invoices?
* Do you always check out business references?
* Do your terms of business make it unambiguous what you will do, when it will be done, how you will be paid, and what will happen if there is a dispute?
* Do you claim interest on late payment?
* Are you aware of the EU directive on factors and agencies?
* Do you sell consumer goods in your business?
* If you are buying or selling overseas, have you settled whose country's law applies?
* Do you know the rules on unfair contract terms? Peter Peter & Wright

What is Wrongful Dismissal?

Wrongful dismissal should not be confused with unfair dismissal. Wrongful dismissal is based on contract law, as well as statute. If an Employer dismisses an Employee, and in doing so, the Employer acts in breach of his contractual obligations or in breach of his statutory obligations to give the Employee notice, then the Employer will be liable to the Employee, for damages for wrongful dismissal. Any damages will be assessed on the basis of what the Employee would have received had the Employer not breached the contract.

In order to bring such a claim, the ex-employee must establish:-

1. That he was dismissed in breach of contract or with less than the statutory minimum period of notice, and
2. That he has suffered loss as a result.

One of the most common breaches of contract is where an Employee has not been given the proper notice period or is dismissed without notice. However, the Employer can, in certain circumstances, justify dismissing the Employee without notice (Summary Dismissal) if the Employee commits a serious breach of contract e.g. theft.

Failure by the Employer to follow a contractual disciplinary procedure can also amount to wrongful dismissal.

Wrongful dismissal claims can be bought in an Employment Tribunal, County Court or High Court, depending on the value of the claim. An Employee can bring a claim for both unfair and wrongful dismissal in the Employment Tribunal. However, any money received under one claim, will usually be cancelled out by the same amount received under the other claim. This stops the Employee from receiving double compensation.

Please note that this information is provided for general knowledge only and therefore specific advice should be sought for individual cases. www.glovers.co.uk