Being sued for equipment hire, but didn't sign a contract

[RichardD]

Hello all, hope everyone's well. Not sure if this is the right forum, please tell me if not.

A few months ago we were organising an event and wanted to hire some garden equipment. We found a company that were able to supply the items and negotiated a price for the date, via email. The company said they would send us a contract. As the event got closer, the weather looked like it wasn’t going to be favourable, so we decided not to go ahead with the party and as we hadn’t received a contract, let alone signed one, or paid any money, we guessed we wouldn’t be receiving the equipment anyway. I emailed the company about 4 days before the event was supposed to happen to say that regretfully the event was off and we wouldn’t be needing the equipment. The day before the event date, I realised I hadn’t heard back from them, so I rang the company to confirm they had received the email and that we weren’t having the equipment. They were shocked. They said they hadn’t received the email and even if they had, they said, it would have been too late - the equipment was ordered and I had to pay the full amount. I explained we never received a contract, hadn’t signed anything and hadn’t paid anything. It never occurred to me that a company would supply anything without those things in place.

I said I'm sorry but there's no way I can pay the full amount, especially if the event is not going ahead. They have subsequently emailed that they have no choice but to pursue me through the courts to recover their costs - which is the full amount (about £1125)

Do I have any rights here? Were my emails confirming address and date enough of a legally binding contract to mean I have to pay? Or without a signed contract will it not stand up in court? Are they just hoping I will hear the words 'legal proceedings' and be scared enough to pay?

[echat11]

Hi RICHARDD

The cancellation of the hired equipment is covered by the Consumer Rights Act 2015 - the following website is directed at businesses, but contains the same information as for Consumers.

https://www.businesscompanion.info/e...es#Thecontract

https://www.businesscompanion.info/e...premises-sales

Only communicate with the hire company in writing.

[RichardD]

Thanks for the reply and pointing me to some useful links, which I have just read.

So, according to the first link - the Supply of Services - the contract was effectively made when he emailed me the offer and I accepted? But then no terms of contract were provided? So, I wasn't to know that I had to provide more than 4-days notice to cancel, for example. Surely that's why a proper, written contract with terms and conditions, that is understood and signed by both parties, is used?

Also, what category does this fall under, it seems to be a bit of 'Supply of Goods' (although it's only hire) and a bit of 'Supply of Services'? There doesn't seem to be a category for hire?

Under the Distance Sellers information, section o. under General it says "If there are no cancellation rights for specific goods, services or digital content that you offer, or there are circumstances in which consumers will lose their right to cancel, you must inform them of this". This was not made clear to me, does that change anything?

Thanks again.

[echat11]

Check the email sent to you, check the Spam folder for T's and C's. They should of sent a whole lot of information because it's a Distance Sale, i.e. Cancellation Rights. I posted a longer answer to each question, but tech issues, it keeps getting deleted.

[pt2537]

Ok couple of questions

1) was this a business transaction ie what do you do for a living? are you an event organiser?

2) you may want to look up "Frustration" as it may well be applicable here depending on why the event was cancelled, if it was cancelled through no fault of yours, then you may have an argument that the contract was frustrated, but because we have no detail on what happened its hard to say

[RichardD]

Thanks for your reply. To answer your questions - this was a private transaction, not B2B or anything like that. And, the event was cancelled because we (my wife and I) saw the weather and thought, if nothing else, it would be dangerous to continue with the equipment for the guests as there were electronics involved and an inflatable, which, given the rain looked like it was going to be heavy, would be quite slippery. We couldn't move inside due to covid restrictions at the time, and space limitations.

[RichardD]

Check the email sent to you, check the Spam folder for T's and C's. They should of sent a whole lot of information because it's a Distance Sale, i.e. Cancellation Rights. I posted a longer answer to each question, but tech issues, it keeps getting deleted.

I checked spam, but not there. They maintain it was sent, explaining that their invoicing system automatically generates and emails everything, so they're sure it was sent. But I couldn't find it anywhere?!? They said that the first clause in their Ts&Cs are "When a booking has been accepted by the Client and the Supplier whether verbally, electronically or written, that booking is confirmed. The fact that the contract has not yet been signed and returned does not invalidate the booking or acceptance of these terms."

[echat11]

It's a bit rich the hire firm saying that they didn't receive your email, but you must of received their email.

Lets say for example they are correct, they did indeed send everything they should of, they would need to set out their losses due to your cancellation (4 days before), not speculate on their actual losses. Also find out do they stock the equipment or did they have to hire it in. Maybe get a friend to make that enquiry.

https://www.gov.uk/government/public...ds-or-services

Also timelines would be good.

You could see if your internet service provider can provide you with data in emails received / sent on a specific day.
Send them a SAR request, they have 30 days to respond.

https://legalbeagles.info/library/gu...ccess-request/

[RichardD]

The last communication I received from them included an 'invoice reminder' and a 'notice before legal proceedings' advising me that I had failed to submit payment, and that they are 'in the process of submitting our application to your local county court for recovery of the outstanding balance together with interest and maximum compensation costs under the late payment legislation'. It goes onto say to avoid this action I can pay the outstanding amount within 10 days.

[echat11]

They might well lodge a claim in the County Court, but there are certain things that don't make sense, you sent an email to cancel, they say they didn't receive it, they are 100% certain that you received the T's & C's (you need to check with your service provider or who ever provides your email address).

I don't think they can claim the amount they want to claim. I think they've done this to other customers.

Also what's the following all about if they deem it unnecessary, 'The fact that the contract has not yet been signed and returned does not invalidate the booking or acceptance of these terms.'

https://www.netlawman.co.uk/ia/unfai...umer-contracts

Check their T's and C's on their website - Cancellations.

pt2537

[RichardD]

I have checked with my email provider and they have managed to find the email they sent me with the contract attached?!? Not sure how they found it and I wasn't able to, but it does seem to have the date on it that means they sent it at the time they did? Does this change things, even though I didn't see it/read it?

[ostell]

Just because they found it doesn't mean you got it. Lots of places for it to slip through. In a similar vein could they find the email you sent?

[RichardD]

Just because they found it doesn't mean you got it. Lots of places for it to slip through. In a similar vein could they find the email you sent?

I will check.



So looking through the contract it does have the following clauses:

2. Booking Confirmation
When a booking has been accepted by the Client and the Supplier whether verbally, electronically or written, that booking is confirmed. The fact that the contract has not yet been signed and returned does not invalidate the booking or acceptance of these terms.
A contract will be issued immediately to the Client and should be signed and returned within 5 days of its issue date. The Supplier will also receive a contract and should be returned within 5 days of its issue date.

Any alterations to this booking must be brought to the attention of the agent who will continue to act as a negotiator. Once all parties have agreed on the alterations the contract will be amended by the agent and re issued.
3. Payment of Fees
A deposit invoice will be issued to the Client with the booking contract and must be paid strictly within 5 days of the issue date. Deposits are paid via BACS transfer only. Deposits are non-refundable.

As of the 10th March 2020 a 40% deposit will be required to book until the Corona virus pandemic has subsided.
The Client must pay the remainder of the balance to the agent 2 weeks prior to the event.
If payment due to the Supplier is not received prior to their performance time, the Supplier reserves the right to terminate the booking contract without penalties. The Client will be liable for cancellation fees as outlined in section 4 – Cancellations by the Client.
If the deposit is not paid within the 5-day period as stated previously then this may be perceived as a breach of contract therefore would free the Supplier from contractual ties. The Client will still be held accountable and liable for the booking deposit.
4. Cancellation by the Client
The Client reserves the right to terminate the contract ONLY in the case of a Force Majeure Event (including national mourning, war, fire, strikes and lockouts directly affecting the venue) the Client must inform the agent as soon as reasonably practicable on becoming aware of the Force Majeure Event. The agent will then notify the Supplier of the cancellation as soon as reasonably practicable after being notified by the Client.
In the event of a cancellation by the Client due to a Force Majeure Event, the Supplier will endeavour to secure an alternative booking on the event date with either the agent or another agency that the Supplier works with.
As it currently stands on the 10th March 2020, there is no official government policy regarding the running or cancelling of events due to the Coronavirus COVID-19. As such the Coronavirus COVID-19 can’t be used as an excuse for Force Majeure which doesn’t exist in civil law (only in contract law). A Force Majeure event has to make the event "impossible to run" not just difficult which Coronavirus does not qualify for.
If the Client terminates the contract for any other reason than a Force Majeure Event the Client will be liable to pay a cancellation fee, in addition to loss of the deposit, calculated as follows:

As of the 10th March 2020 any bookings affected by Coronavirus will have the option to postpone the event within and up to 6 months after the original event date. This will stop cancellation charges however the 50% deposit is still required regardless and the remaining balance paid 2 weeks prior to the new event date. If the event cannot be postponed within the 6 month window, the full Cancellation fee is due.

If cancellation is made within 48 hours of confirmation then no cancellation fee is due unless the event is within the following 7 days, in which case the full fee will be due.
If cancellation by the Client is made up to 90 days before the event, then 50% of the total remaining balance is due.
If cancellation by the Client is made up to 61 days before the event, then 75% of the total remaining balance is due.
If cancellation by the Client is made within 60 days of the event, then 100% of the total remaining balance is due.
All cancellation fees will be paid to the agent within 14 days of the event date. The agent will then forward the fees on to the Supplier within 7 days of receipt of clear funds.

If cancellation fees are not received within the 14-day period stated previously we may take legal action or refer the amount to a debt recovery agency.

So, even if I had received it ... the first part of clause 2 looks 'unfair'. I don't understand the end of clause 3 where it says 'If the deposit is not paid within the 5-day period as stated previously then this may be perceived as a breach of contract therefore would free the Supplier from contractual ties. The Client will still be held accountable and liable for the booking deposit.'?! Is the supplier still contracted or not??

It's very confusing.

[pt2537]

https://www.legislation.gov.uk/uksi/.../contents/made

These regulations apply to your transaction it seems, have a read

[RichardD]

Thanks for this pt2537

Unfortunately, there are 47 sections and 4 schedules, and it's all written in jargon. Can you give me a clue as to where I should focus on or what I'm looking for?

Thanks for your help.