MoneyClaim case does the defendant have a valid defence

[MadKen]

I hope someone can help as I am concerned my money claim will fail.

I entered into a contract as a freelance trainer with a training company, I signed the contract supplied by the training company as an individual, however I informed the company, verbally via telephone, that I would invoice via my LTD company, which they agreed prior to any work carried out.

The defendant accepted an email with an employers liability certificate in the LTD company name at the outset.

I raised my first invoice which was subsequently paid.

I raised a further 4 invoices which were discussed with other members of the defendant company but have not been paid and the invoices went over the due date without any dispute.

I took the decision to raise a money claim and they now defend this saying there is no contract between the LTD company and themselves and therefore they do not owe the money.

Is it possible that I am still awarded the claim considering the company already paid one invoice and accepted the employers liability certificate in the name of the LTD company?

Many thanks for your thoughts on this one.

[jaguarsuk]

Firstly you should have sought legal advice before launching the claim.

They have entered into a contract with your company, just not one that is written down. The agreement in simple terms is that the company will provide a service and they will pay for it.

To demonstrate a contract has been agreed there must be offer, acceptance and performance. In paying the first invoice they have basically said that all three have taken place.

The claim should be between your company and theirs based on a simple verbal contract.

They have a separate written contract with you personally which you personally have not performed or billed them for.

In future if you’re going to bill from your company then the contract is in the company name from your side.

The alternative to a claim would have been to reissue the invoices from you personally and give them 28 days to pay them.

I’m assuming you have done things this way for tax reasons and that’s why you haven’t gone that way?

[MadKen]

Firstly you should have sought legal advice before launching the claim.

They have entered into a contract with your company, just not one that is written down. The agreement in simple terms is that the company will provide a service and they will pay for it.

To demonstrate a contract has been agreed there must be offer, acceptance and performance. In paying the first invoice they have basically said that all three have taken place.

The claim should be between your company and theirs based on a simple verbal contract.

They have a separate written contract with you personally which you personally have not performed or billed them for.

In future if you’re going to bill from your company then the contract is in the company name from your side.

The alternative to a claim would have been to reissue the invoices from you personally and give them 28 days to pay them.

I’m assuming you have done things this way for tax reasons and that’s why you haven’t gone that way?

Hi, thanks for your input, you are quite right, it was easier for tax reasons to do this. I only became aware that this was thier defence when they filed to the money claims service. They had been discussing the invoices in terms of reducing the amount to 50% as full and final settlement and have bullied many others, which I rejected. I'm still going ahead with the claim and will keep you posted.

From now on I certianly will make sure the company name is included.

Again thanks for your input.

[jaguarsuk]

Did you get their agreement of the company billing for the services you’ve provided under the contract in writing?

If not what is going to be central to to your argument is that they paid the first invoice thus proving what you say to be true.

Did you state in the particulars of claim that they had agreed to the company billing for the services? If not you need to reply to the defence to clarify that point.

You could argue that you personally have entered into contract with your limited company to provide a billing service for you relating to the contract. They knew this and that’s why they paid the first invoice, but due to the economic climate they’re now trying to find a loophole to get out of their obligations.