No connection on a £216,000 cancellation fee
A legal case last year highlighted the importance of fully understanding the contract terms that apply to a commercial arrangement.
A social care provider (Be Caring Limited) was facing a charge of £180,000 plus VAT to cancel 800 mobile phone connections. A cost imposed by its mobile phone supplier (Blu-Sky Solutions Limited) that 'would be catastrophic' and 'highly likely to result in redundancies having to be made'.
In the event, the court held that the cancellation fees were unenforceable, but not before the issue had caused the provider very considerable concern.
A blog by Emma Watt, Associate of Anthony Collins Solicitors LLP describes what happened.
Homecare Association members are entitled to a limited amount of free advice from our legal helpline on contract issues. This doesn’t extend to reading or drafting documents, but does cover general telephone advice. Please call the member helpline on 020 8661 8188, option 4, for referral.