B2B Invoice dispute

[churchfarm]

Hello,

Thanks for letting me join. I wonder if someone can direct me to the right forum?

I ordered some units to expand my business back in 2019, for delivery April 2020. The company then said that their factory was closed due to COVID, and so the units wouldn’t be ready on time. Eventually after lots of pressure, they were delivered April 2021. However, they were supposed to be ready to use, and as such ready to earn revenue. However they arrived far from finished, and so were were not. They continued to delay and be slow to get the work complete. I had to project manage the completion of the project myself, something which was not my responsibility. Eventually we were able to see revenue from the project at the beginning of September 2021. We also found out that the factory didn’t actually shut down for the period they said, and our project was just pushed to the back of the warehouse, because there was the company split into two and ours was an old order at this point.

We have an outstanding invoice which we now wish to re negotiate based on the fact that the revenue lost, even in the time between delivery and getting up and running (April-Sept) far exceeds the amount of moneys owed. Plus there are still serious issues with the units which need to be addressed.

The company has asked us to settle the invoice, and I responded by reiterating the delays and the resulting revenue loss. I also informed them of the issues that still exist with the product. I requested we be able to discuss a resolution to the situation. We didn’t get a reply, but received an email 6 weeks later, from a different person at the company asking when we plan to settle the invoice.

What is my best course of action now? I understand that as this was a b2b purchase; we are not covered by The Consumer Rights Act. However, we will have some coverage by the Sale of Goods Act? Should I try and find a solicitor who specialises in this kind of thing? If so, how is the best way to find one? Would that be a commercial law specialist? Is there a template letter I can send to them in the meantime, or should I just go straight to a solicitor?

Sorry for all of the questions, any advice would be really appreciated.

[islandgirl]

I would imagine it comes back to the contract between you. If this stiupulated delivery times and standard at delivery and was not complied with you have a good case to renegotiate. Try to avoid going legal if you can - arrange a meeting or mediation perhaps? Make a proposition quoting the contract and how it was not complied with and make an offer. You would be expected to try to resolve outside the court system first.

[des8]

Are you sure this is B2B?
I only ask as you don't say whether or not you are a sole trader or a limited company.
The definition of of a consumer in Consumer Rights Act 2015 (CRA 2015) might be of interest:
>“Consumer” means an individual acting for purposes that are wholly or mainly outside that individual’s trade, business, craft or profession.<

[churchfarm]

Hello, I’m a sold trader and the purchase was purely to extend my already existing business.

[des8]

So it could be that you were a consumer for example if you are a shopkeeper looking for a shop refit this might well be considered outside your business: as it would if you are a builder buying a truck.

CRA 2015 might well be your salvation!

[islandgirl]

Ideal if it will but otherwise it is back to the contract - what does it stipulate? Offers and compromise will be better than court...

[jaguarsuk]

I think it might be worth you sending them a letter outlining the problem, detailing the losses you incurred and asking to resolve this.

That way if they ever do go down the legal route to get the invoice in your counterclaim you can evidence you tried to resolve the matter without need to legal proceedings.