Royal Mail ceasing service

[Guest]

Hi there, woiuld really appreciate some advice if anyone has been in a similar situation.

We were using Royal Mail for our posting and had an account.

This account was linked to our Amazon account and a condition for being eligible to offer our customers Prime delivery, and the subsequent increase in business that having the "Prime button" gives.

We had a very busy period and renegotiated better rates with RM.

They did not implement the new rates, despite us chasing, so I cancelled the direct debit and thought they would contact me to get payment and then sort the new rates.

After 2 missed payments (total of 7 days late from the 1st one, 1 day from the second one), they immediately ceased service and cancelled our account. No phone call, email, letter, nothing.

This appears to me to be a breach of contract from them, as the contract agreed to (standard Ts and Cs) clearly state that they must provide notice before cancelling. (If they had called/emailed/written we would have paid pending them implementing the new rates)

As a result of them cancelling our agreement, we lost our amazon Prime eligibility, leading to a severe loss of revenue which continues to now (busiest period of the year)

My question is, the Ts and Cs state that they will not be held liable for loss of revenue etc, but in a claim for damages resulting from their breach of contract is this immunity from liability waived? Eg. Can I sue them for loss of revenue/profit?

Appreciate this has been a long read so thank you if you've got this far and Merry Christmas!

[des8]

You cancelled the direct debit without telling them?
Bad move as that possibly was a breach of contract (depending on T&Cs)

[Eren99]

You cancelled the direct debit without telling them?
Bad move as that possibly was a breach of contract (depending on T&Cs)

Looking at Ts and Cs there is nothing in there that says we have to have a DD set up to maintain the account. It says settlement must be by bank transfer or DD so I am confident we have not breached the contract.

Also, given the track record on the account, never late, growing all the time, decent spend, in daily communication with the posties and local depot, there was no reason or insinuation that we would not be able to pay or were refusing to pay.

The invoice was 7 days late and we had paid an invoice less than 3 weeks prior, in the same calendar month.

I really think they've breached contract here not us, my question is am I able to claim for damage to our business?

[des8]

OK, so if they have breached the contract you can sue them for damages, but winning is another question.

It is perfectly legal to include in contracts clauses limiting or excluding liability.
Whether or not their exclusion or limitation is effective will depend on whether they can be interpreted clearly and be deemed to be fair and reasonable.

Be warned that the courts are reluctant to get involved where the parties have just made a bad bargain - there will need to be uncertainty as to what was agreed and / or the clause excluding or limiting liability must be unfair / unreasonable before the courts will step in.