Claim Being Made Against Me Based On A Non-Existant Verbal Contract

[tarranty]

I bought a long established curtain making business last year as the owner retired, we drew up a basic contract and I took over the trading name, phone number, website, stock from 1st August. The previous owner had took an order from a customer, took the deposit and made the curtains, the customer's house purchase was delayed so she couldn't fit them and take the balance. No mention of this was mentioned as she left other than they are ready to fit when the customer calls. A month later she called us and I went and hung them and took payment in the business name.

The previous owner called a few weeks later demanding the money, I said no, as far as I am concerned the customer's contract is with me, if anything goes wrong with the product in the future the customer will come to me, not her.

I have to attend a hearing soon as a claim is being made and wondered if there is anything I can do to defend myself?

[kvalidir]

When there is disagreement over a verbal contract there is never any proof positive one way or the other, it's just a matter of who is believed. Might go your way, might go hers, who knows?
On one hand you are very happy to tell us all what the law is regarding your suppliers and imho you are wrong in that, yet you seem entirely ignorant of other matters. Imho, and this is my last piece of advice on the subject, you might find that if you poke her and provoke her she can cost you a lot more than a pair of curtains, as 'simple contracts' which don't even specifically address things like debts and who gets paid for outstanding but already processed orders are in fact nothing but a complete liability.If you think about it also there will be some dispute about the 'customer's contract being with me' because you were not the owner of the 'business' at the time the contract for making the curtains was made. As you are so fond of pointing out, this is not a Ltd company, it is Mrs so and so trading as 'It's Curtains for You' or whatever it's called, sooooo, there could have been no contract with the company because there isn't one- it's just a trading name. The contract is with the previous owner which would mean that the deposit is hers, and the balance is hers I think. I think that will be her most compelling argument of quite a few she might employ that I can think of. It's not worth getting solicitor involved for such a small amount so I think you'll just have to roll with it.

[tarranty]

The business acquisition contract was on paper, she hasn't mentioned a date or time that the 'verbal contract was made, just said that I would charge a "fitting fee" with no mention of how much, all very vague. Thanks for all the replies, all much appreciated and have given me a lot to consider and as I'm at court tomorrow shall report on the outcome. The case was originally dismissed as she didn't pay the fee then reinstated five days ago using the original court date when she gave the reason for non-payment as being due to her late benefits payment, hence the short notice for me to gather a defence.

[tarranty]

Sorry, didn't mean to offend or proclaim that I have any more knowledge than you and really appreciate everyone taking time to reply, I just wanted to get across that her debts are not my concern for the hearing. You're right though, maybe they will come back to bite me and I shouldn't have been so blase about them.

[kvalidir]

You didn't offend me at all, I think we were just trying to look at the very big picture for you rather than just this one aspect of it. I hope you get on alright, and let us know how it turns out :)

[boxtops]

Do let us know, tarranty - this does seem to have been a very loose arrangement, and I hope it goes well for you tomorrow.

[EDDIE51]

All I can add is that if you need to get a solicitor on to this case the legal fees will soon dwarf the cash you took for the curtains. Solicitors/court costs are not recoverable no matter if you win or lose the case, I would consider offering say 50% of the cash she is asking for to settle out of court, you may well be right and win the case, but win or lose if it goes to court it will cost you a lot more than the £700 you say you took for the curtains. If you do decide to settle out of court for heavens sake get it in writing and signed for!

[tarranty]

Well that was a bit harrowing but the judge found in my favour and said that our "home-made" contract was the only evidence he could go on and that the named assets on it included customer accounts and stock/inventory and in the absence of any recorded evidence of that not including this customer he had to go on the written signed contract. I think he actually believed her because he said to her 'in hindsight perhaps you should have written this down' Thanks again, appreciate the comments and help.

[Svejk]

I knew it was an open and shut case.

[EcclesCake]

Pull yourself together Svejk.

[Svejk]

:o)

[boxtops]

A lesson for next time, tarranty - but well done on winning your case.

[kvalidir]

Well done Tarranty, glad you came out on top:)