Business legal advice sought - been taken for a ride!
Discussion
We recently opened a new clothing boutique for my wife's clothing business. Appointed a company to fit out the shop with satin chrome racking and rail systems. Throughout the order process we dealt with the director of the company who made two site visits and showed us samples of what we expected to be buying (Satin Chrome materials). The visuals the company created also showed the rails to be in satin chrome as do all brochures.
This morning their supply team arrived to install the rails and we were shocked to see grey powder coated (very cheap looking!) rails! We then spoke to the director of the company who told us that this is what we ordered and that he would have never quoted satin chrome so cheap. Argued for around 15 mins on the phone after which he told me that we need to pay £2000 inc VAT to have what we wanted - an increase of around 40% of the initial order quote provided!
We have paid a 50% deposit - I declined the delivery of the goods and wrote on the invoice - returned as not what was ordered (Satin Chrome).
This guy had the cheek to threaten me to get the remainder of the 50% off me via legal means - I obviously threatened back that I would be going down the legal route to recover my 50% deposit.
All a bit messy now but I need to either get my deposit back or get him to fit what we initially agreed - both which he has declined as options unless I stump up the additional monies.
There have been no contracts signed and the payment of 50% deposit was done via bank transfer.
Any advice to recover my money would be appreciated. With the above info do I have a leg to stand on legally?
Thanks
This morning their supply team arrived to install the rails and we were shocked to see grey powder coated (very cheap looking!) rails! We then spoke to the director of the company who told us that this is what we ordered and that he would have never quoted satin chrome so cheap. Argued for around 15 mins on the phone after which he told me that we need to pay £2000 inc VAT to have what we wanted - an increase of around 40% of the initial order quote provided!
We have paid a 50% deposit - I declined the delivery of the goods and wrote on the invoice - returned as not what was ordered (Satin Chrome).
This guy had the cheek to threaten me to get the remainder of the 50% off me via legal means - I obviously threatened back that I would be going down the legal route to recover my 50% deposit.
All a bit messy now but I need to either get my deposit back or get him to fit what we initially agreed - both which he has declined as options unless I stump up the additional monies.
There have been no contracts signed and the payment of 50% deposit was done via bank transfer.
Any advice to recover my money would be appreciated. With the above info do I have a leg to stand on legally?
Thanks
you say that the visuals the company created show the satin chrome finish - were these visuals specifically for your store?
If so, then I would go back to him on that basis - as it clearly shows what they will be using - confirmed by his own discussions with you...
if they don't like it - MCO
I would be surprised if they could get more money off you if you have rejected the goods...
If so, then I would go back to him on that basis - as it clearly shows what they will be using - confirmed by his own discussions with you...
if they don't like it - MCO
I would be surprised if they could get more money off you if you have rejected the goods...
akirk said:
you say that the visuals the company created show the satin chrome finish - were these visuals specifically for your store?
If so, then I would go back to him on that basis - as it clearly shows what they will be using - confirmed by his own discussions with you...
if they don't like it - MCO
I would be surprised if they could get more money off you if you have rejected the goods...
Yes the visuals show out store floorplan!If so, then I would go back to him on that basis - as it clearly shows what they will be using - confirmed by his own discussions with you...
if they don't like it - MCO
I would be surprised if they could get more money off you if you have rejected the goods...
What is the supply cost from an alternate supplier for satin chrome for the same specification/floor plan? Is it inkeeping with the existing supply quote?
It goes without saying that any Court proceedings would be one person's word against another and an absence of any contemporaneous evidence from what you state.
It goes without saying that any Court proceedings would be one person's word against another and an absence of any contemporaneous evidence from what you state.
if a written quote specified powder coated, but the store plan showed chrome, it might be reasonable to expect powder coated...
if nothing is specified other than on the store plan, it might be reasonable to expect as per the store plan
does the store plan actually label them as satin chrome, or is it simply in the visual?
How obvious is it from the store plan that they should be satin chrome? - difference in shape / colour / text / ???
if nothing is specified other than on the store plan, it might be reasonable to expect as per the store plan
does the store plan actually label them as satin chrome, or is it simply in the visual?
How obvious is it from the store plan that they should be satin chrome? - difference in shape / colour / text / ???
When you were shown samples of the product were they any of them Powder Coated?
Was the finish of the rails discussed at any point?
If not, then it's not unreasonable for you to expect the finish as per the samples and "visuals" - especially if the quote doesn't mention them being powder coated.
Was the finish of the rails discussed at any point?
If not, then it's not unreasonable for you to expect the finish as per the samples and "visuals" - especially if the quote doesn't mention them being powder coated.
EddieSteadyGo said:
From your knowledge of the other quotes you received, do you think it is reasonable that the price you were quoted should have included the higher quality rails?
Quite. And the point that I was making. What was reasonable to expect for the agreed price when contrast to other estimates. That will be a consideration.The product on offer from these guys are pretty different to those being offered by any other firm. All samples shown at site visit were satin chrome, all company brochures left with us where satin chrome, all 3d drawings show satin chrome - the powder coated tosh being delivered can be seen no where in the firms literature so how will one expect this to be what is being delivered.
The company came back this morning and said that the cost to "upgrade" would be £1800 + VAT however they would absorb some of the cost and we now have to pay £1200 inc VAT to have this resolved. However what must be noted here is that the most significant clause to rectify this issue is that the company now want a "cleared payment" before the goods are installed!
Initial payment terms I have in writing from them are 50% up front (which we have paid) and 50% 30 days after delivery! They are now resorting to bullying tactics as they seem to have us in "one corner!"
We are now expected to pay in full before they would even consider finishing off this job!
Surely this is not ethical?
The company came back this morning and said that the cost to "upgrade" would be £1800 + VAT however they would absorb some of the cost and we now have to pay £1200 inc VAT to have this resolved. However what must be noted here is that the most significant clause to rectify this issue is that the company now want a "cleared payment" before the goods are installed!
Initial payment terms I have in writing from them are 50% up front (which we have paid) and 50% 30 days after delivery! They are now resorting to bullying tactics as they seem to have us in "one corner!"
We are now expected to pay in full before they would even consider finishing off this job!
Surely this is not ethical?
AMDB9 said:
The product on offer from these guys are pretty different to those being offered by any other firm. All samples shown at site visit were satin chrome, all company brochures left with us where satin chrome, all 3d drawings show satin chrome - the powder coated tosh being delivered can be seen no where in the firms literature so how will one expect this to be what is being delivered.
The company came back this morning and said that the cost to "upgrade" would be £1800 + VAT however they would absorb some of the cost and we now have to pay £1200 inc VAT to have this resolved. However what must be noted here is that the most significant clause to rectify this issue is that the company now want a "cleared payment" before the goods are installed!
Initial payment terms I have in writing from them are 50% up front (which we have paid) and 50% 30 days after delivery! They are now resorting to bullying tactics as they seem to have us in "one corner!"
We are now expected to pay in full before they would even consider finishing off this job!
Surely this is not ethical?
Sounds to me like a sharp modus operandi to eek more ££££ from a deal - especially now they have some of your cash.The company came back this morning and said that the cost to "upgrade" would be £1800 + VAT however they would absorb some of the cost and we now have to pay £1200 inc VAT to have this resolved. However what must be noted here is that the most significant clause to rectify this issue is that the company now want a "cleared payment" before the goods are installed!
Initial payment terms I have in writing from them are 50% up front (which we have paid) and 50% 30 days after delivery! They are now resorting to bullying tactics as they seem to have us in "one corner!"
We are now expected to pay in full before they would even consider finishing off this job!
Surely this is not ethical?
Sounds to me they are in breach.
Ideally you would engage an affordable lawyer to set out the reasons you believe they are in breach and give them an opportunity to rectify by providing the agreed spec goods at the agreed price.
Failing them rectifying, letter before action, small claims.
Probably hard to justify the £500-£1000 legal fees for a couple of letters though.
This is an unfortunate situation but it shows the need to put everything in writing at the outset.
I am sometimes teased about the fact I state the obvious in my emails when doing a deal. It is for one simple reason. It makes everything clear and it is 'written down'.
I seldom have an issue with a supplier because the deal is not open to misinterpretation.
I also trend to deal with companies I know as price is not always the major factor.
I am sometimes teased about the fact I state the obvious in my emails when doing a deal. It is for one simple reason. It makes everything clear and it is 'written down'.
I seldom have an issue with a supplier because the deal is not open to misinterpretation.
I also trend to deal with companies I know as price is not always the major factor.
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