Business Debt - Can I chase?
Discussion
G'day all,
My company sold five machines to another business a year or so ago. A deposit was paid, machines delivered and installed. Balance due on install, didn't arrive, chased for the best part of a year, gave space because of Covid etc. Eventually got fed up and removed machines. One machine was not present, director of purchasing business says that deposit covers the cost of that one machine.
It's not a huge amount of money but more the principle. The removed machines all needed a lot of work because no maintenance was ever carried out on them. Collection costs, delivery costs, reselling costs etc. I'd like to put some 'pain' onto the buyer as they messed us around so much and have got away with it.
What course of action can I take? Terms and Conditions on the invoice are minimal (since updated) but does state the payment was a deposit for the whole order rather than payment for one machine.
Thoughts? Ta
My company sold five machines to another business a year or so ago. A deposit was paid, machines delivered and installed. Balance due on install, didn't arrive, chased for the best part of a year, gave space because of Covid etc. Eventually got fed up and removed machines. One machine was not present, director of purchasing business says that deposit covers the cost of that one machine.
It's not a huge amount of money but more the principle. The removed machines all needed a lot of work because no maintenance was ever carried out on them. Collection costs, delivery costs, reselling costs etc. I'd like to put some 'pain' onto the buyer as they messed us around so much and have got away with it.
What course of action can I take? Terms and Conditions on the invoice are minimal (since updated) but does state the payment was a deposit for the whole order rather than payment for one machine.
Thoughts? Ta
AB said:
Personally, I think you'd spend a lot of time and resources chasing it and probably end up with nothing. It'd be different if you hadn't got the machines back.
Agree yes, but it's more a case of principle so happy to waste a bit more time if there is a route which would lead to success.MAMC said:
AB said:
Personally, I think you'd spend a lot of time and resources chasing it and probably end up with nothing. It'd be different if you hadn't got the machines back.
Agree yes, but it's more a case of principle so happy to waste a bit more time if there is a route which would lead to success.If the deposit covers the cost of the one remaining machine then that's it IMHO. I suspect the company has run out of money or changed its mind. If the value of the machine they still have is more than the deposit paid you could try for the difference.
If you are that way out then you could easily start a claim using www.moneyclaim.gov.uk, which has pretty low fees and minimal time involved. Just fill in the claim and await a response. You'll then likely have to file a further response, and potentially attend an court (online or in person).
Personally, if it's not really about the money (as you say), and the money isn't significant, then move on. Life's too short.
Personally, if it's not really about the money (as you say), and the money isn't significant, then move on. Life's too short.
If you can demonstrate you had Retention of Title, then you own all the machines until all the money owed is paid. That means the machine they didn't give you is still yours and they can't sell it as they didn't have title to pass to their customer
If you don't have Retention of Title however, then title to all 5 machines passed at the point of delivery (i.e. the time your customer took physical possession) regardless of what, if any, monies were paid to you
Retention of Title requires a pre-contractual agreement so terms on an invoice are insufficient given the invoice is almost always produced post contractually (after the order was made). I assume from your post you don't have valid ROT
So all you have is breach of contract and you would find it expensive to pursue with little likely reward
Use it as a learning exercise to tighten up terms and procedures for future
If you don't have Retention of Title however, then title to all 5 machines passed at the point of delivery (i.e. the time your customer took physical possession) regardless of what, if any, monies were paid to you
Retention of Title requires a pre-contractual agreement so terms on an invoice are insufficient given the invoice is almost always produced post contractually (after the order was made). I assume from your post you don't have valid ROT
So all you have is breach of contract and you would find it expensive to pursue with little likely reward
Use it as a learning exercise to tighten up terms and procedures for future
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