Relationship Breakdown With Supplier - Advice
Discussion
Hi,
Interested to hear some third party views, i'll keep it short.
Client project.
Certain aspects to be outsourced.
Sent to a supplier.
Phase one provided and paid for without issue, as per normal.
Some amends required with same supplier, agreed quote for amends.
Supplier missed some of the amends as misinterpreted them and was also informed that the file wasn't suitable for manufacture so required some additional changes.
Supplier kicked off - stating and I quote - "Pay my invoices and I will do this, but I’m not working on it anymore, while I have outstanding invoices yet to be paid."
The other invoices were all unrelated to this project and not due yet.
I told him I was not to be held to ransom and I would finish the project elsewhere, I then ceased communication.
Gave it to another supplier who promptly completed the work without issue and got paid.
During this time original supplier felt bad and completed amends and sent them to me.
I've told first supplier I'm not paying the amends invoice as they were not completed in full and they said they weren't finishing it.
They are thresating all sorts, small claims court, defamation of our company so on and so forth.
I'm tempted to just pay and get rid of them but my principles stand in my way here, Why should I pay twice. If they thought they were right, why go back on what they said and complete the amends??
Have everything in writing btw.
What would the collective do?
Interested to hear some third party views, i'll keep it short.
Client project.
Certain aspects to be outsourced.
Sent to a supplier.
Phase one provided and paid for without issue, as per normal.
Some amends required with same supplier, agreed quote for amends.
Supplier missed some of the amends as misinterpreted them and was also informed that the file wasn't suitable for manufacture so required some additional changes.
Supplier kicked off - stating and I quote - "Pay my invoices and I will do this, but I’m not working on it anymore, while I have outstanding invoices yet to be paid."
The other invoices were all unrelated to this project and not due yet.
I told him I was not to be held to ransom and I would finish the project elsewhere, I then ceased communication.
Gave it to another supplier who promptly completed the work without issue and got paid.
During this time original supplier felt bad and completed amends and sent them to me.
I've told first supplier I'm not paying the amends invoice as they were not completed in full and they said they weren't finishing it.
They are thresating all sorts, small claims court, defamation of our company so on and so forth.
I'm tempted to just pay and get rid of them but my principles stand in my way here, Why should I pay twice. If they thought they were right, why go back on what they said and complete the amends??
Have everything in writing btw.
What would the collective do?
If you told them you'd finish the project elsewhere, then why did they decide to complete the work when they said they wouldn't? You didn't order it so it was speculative at best.
If (1) all the work they did has been paid for, and (2) there are no orders for anything further (or subsequent cancellation) then they have no case I'd say.
The only weak link perhaps is the bit where you say you 'ceased communication'. Did they send you anything during this phase?
If (1) all the work they did has been paid for, and (2) there are no orders for anything further (or subsequent cancellation) then they have no case I'd say.
The only weak link perhaps is the bit where you say you 'ceased communication'. Did they send you anything during this phase?
SUPPLIER
12/05/2015 16:56:53
Pay my invoices and I will do this, but I’m not working on it anymore, while I have outstanding invoices yet to be paid.
US
12/05/2015 16:59:14
if you’re going to be like this forget it
They say they aren't doing any additional work, we say forget it then. I think it's pretty clear no more work was going to be done. I immediately engaged other supplier as an urgent job.
Then an email by which point I had left the office:
Tue 12/05/2015 18:35
I apologize for any confusion on my side, moving forward I am happy to complete all changes
I didn't respond and following morning new email with files delivered with 'most' changes complete. I already had another supplier on the job following both parties stating to stop any work.
I can only think that they decided after the exchange that they went a bit far demanding payment on unlrelated invoices that weren't even due and wanted to recover what was left of the relationship.
12/05/2015 16:56:53
Pay my invoices and I will do this, but I’m not working on it anymore, while I have outstanding invoices yet to be paid.
US
12/05/2015 16:59:14
if you’re going to be like this forget it
They say they aren't doing any additional work, we say forget it then. I think it's pretty clear no more work was going to be done. I immediately engaged other supplier as an urgent job.
Then an email by which point I had left the office:
Tue 12/05/2015 18:35
I apologize for any confusion on my side, moving forward I am happy to complete all changes
I didn't respond and following morning new email with files delivered with 'most' changes complete. I already had another supplier on the job following both parties stating to stop any work.
I can only think that they decided after the exchange that they went a bit far demanding payment on unlrelated invoices that weren't even due and wanted to recover what was left of the relationship.
difficult to advise without knowing any contractual terms between you...
for example their contract could allow them to requst payment of any outstanding invoices on demand - do you have payment terms in a contract...
they could also have the ability to require part payment for part completion of work - depending on what was done / etc... that wouldn't be unusual to prevent the client abandoning them mid-work leaving them with unpaid costs...
so we don't knwo whether it was quite as simple as you say - but assuming no such contractual basis for the work, then I would simply drop them a letter thanking them for their communication of xyz inst. and you won't be paying them for work which wasn't done.
and leave it at that - they would need more then they seem to have for any small claims court process to work in their favour
as for threat o defamation I would ignore them - they rarely work as well as they hope and often backfire on the person who slanders...
for example their contract could allow them to requst payment of any outstanding invoices on demand - do you have payment terms in a contract...
they could also have the ability to require part payment for part completion of work - depending on what was done / etc... that wouldn't be unusual to prevent the client abandoning them mid-work leaving them with unpaid costs...
so we don't knwo whether it was quite as simple as you say - but assuming no such contractual basis for the work, then I would simply drop them a letter thanking them for their communication of xyz inst. and you won't be paying them for work which wasn't done.
and leave it at that - they would need more then they seem to have for any small claims court process to work in their favour
as for threat o defamation I would ignore them - they rarely work as well as they hope and often backfire on the person who slanders...
From the looks of it you both had a spat at each other, you threatened them to take the work elsewhere, they reflected on your threat and decided to eat some humble pie an hour and a half later.
you acknowledge that you didnt respond to their email but chose to brief and contract with one of his competitors.
Personally i think you've contracted twice for the same work to be done.
If you really didnt want supplier #1 to finish the work in line with the contract then you should have told him not to in response to his email of 18:35.
you acknowledge that you didnt respond to their email but chose to brief and contract with one of his competitors.
Personally i think you've contracted twice for the same work to be done.
If you really didnt want supplier #1 to finish the work in line with the contract then you should have told him not to in response to his email of 18:35.
No spat as such, they said they werent to continue, i responded telling them to forget it then. Both parties aware work has stopped. Once that was established i contacted other supplier.
I saw email first thing in morning and an hour or so later before i had time to respond due to meetings etc i had another email with work. Ii dont know what more i could have done but my priority was to complete work asap
I saw email first thing in morning and an hour or so later before i had time to respond due to meetings etc i had another email with work. Ii dont know what more i could have done but my priority was to complete work asap
Marcellus said:
Had they actually breached the contract?
I suggest not, they threatened to breach the contract and then apologised..
I say all of this from a procurement perspective not a vendors persoective.
What contract though? I suggest not, they threatened to breach the contract and then apologised..
I say all of this from a procurement perspective not a vendors persoective.
They wanted to do a job and theyquoted, we agreed to their quote to meet our requirements, they then didn't want to finish it, not meeting our requirements and we agreed they could do that.
It wasn't a threat on their part, it was clear, if we didn't pay unrelated invoices then they won't do finish the job. They changed their mind, but it was too late, we had to get this done, they knew it was urgent all along.
Should I have given them 24 hours just in case they changed their mind and actually wanted to start it again, of which I had no guarentee?
Interesting to hear from both sides though as I dont see that I've done anywrong but could be blinkered somewhat
Marcellus said:
singlecoil said:
The answer is simple- if you are sure of your ground and have the evidence, let them take you to court. I doubt it will get that far but if it does, you will win.
On what grounds? "The buyer changed their mind"?hornetrider said:
I'm amazed you had another supplier on the case within what, half an hour tops?
I never keep all my eggs in one basket and have multiple suppliers on the go at any one time for this particular discipline . One phone call and slightly more money than it would've been before and I know I have it done in a very short space of time . What was left on this particular project was so small in relative terms that the whole matter became even more frustrating to be honestMarcellus said:
Had they actually breached the contract?
I suggest not, they threatened to breach the contract and then apologised..
.
In legal speak, this is 'anticipatory repudiation'. I suggest not, they threatened to breach the contract and then apologised..
.
Provided that the OP had no overdue invoices, then on the face of it the supplier has simply warned the OP that they are breaching the contract.
If that is the case, and if the OP has documentary evidence that he entered into contractual relations with another party after that communication and before their change of heart then the OP has acted reasonably.
In fact, the OP would have a claim for the anticipatory breach of contract for his losses. Those would be the additional costs he encountered for having to take his business elsewhere at short notice.
The supplier has really shot themselves in the foot here.
They should have said. "We're happy to do this, however, could you tell us when invoices X, Y and Z may be remitted please?"
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