Two contracts awarded, payment messed up
Discussion
We won two tenders from one organization in Norway to supply two identical specialised pieces of equipment to two of their locations, each worth about £50,000.
We supplied the goods however we were a bit late with both pieces of equipment, there were provisions in the contracts to deduct money for this.
One of the customer locations paid the full amount, we then a week later received a legal letter advising we would not be paid in full due to late delivery (deduction of £6,000 per machine). In other words it appears the customer location that had already paid in full had made a mistake.
As the customer had already paid for one location (one contract) in full, they took double the amount off the other piece of equipment. A different contract. I include two screenshots of bits of the contracts:
|https://thumbsnap.com/E9L36hRb
|https://thumbsnap.com/8pQaU3h2
(The lateness wasn't entirely our fault, we could argue elements of force majeure.)
Where do we stand contractually now? Surely they can't just take money off a separate contract to make up for their mistake? As it stands this is likely to cause us big auditing problems at the least.
Cheers
We supplied the goods however we were a bit late with both pieces of equipment, there were provisions in the contracts to deduct money for this.
One of the customer locations paid the full amount, we then a week later received a legal letter advising we would not be paid in full due to late delivery (deduction of £6,000 per machine). In other words it appears the customer location that had already paid in full had made a mistake.
As the customer had already paid for one location (one contract) in full, they took double the amount off the other piece of equipment. A different contract. I include two screenshots of bits of the contracts:
|https://thumbsnap.com/E9L36hRb|https://thumbsnap.com/8pQaU3h2(The lateness wasn't entirely our fault, we could argue elements of force majeure.)
Where do we stand contractually now? Surely they can't just take money off a separate contract to make up for their mistake? As it stands this is likely to cause us big auditing problems at the least.
Cheers
Hammersia said:
(The lateness wasn't entirely our fault, we could argue elements of force majeure.)
Where do we stand contractually now? Surely they can't just take money off a separate contract to make up for their mistake? As it stands this is likely to cause us big auditing problems at the least.
Cheers
It's not an "auditing problem" for them as there will be an audit trail at their end. It shouldn't be a problem at your end either as others have pointed out.Where do we stand contractually now? Surely they can't just take money off a separate contract to make up for their mistake? As it stands this is likely to cause us big auditing problems at the least.
Cheers
What's the issue? You say that both deliveries were late and that the client is entitled to deduct money if the deliveries were late so I'm not sure what the problem is (unless you were hoping to benefit from their error)?
Countdown said:
It's not an "auditing problem" for them as there will be an audit trail at their end. It shouldn't be a problem at your end either as others have pointed out.
What's the issue? You say that both deliveries were late and that the client is entitled to deduct money if the deliveries were late so I'm not sure what the problem is (unless you were hoping to benefit from their error)?
Well, contract is a contract, looks well dodgy to me. What's the issue? You say that both deliveries were late and that the client is entitled to deduct money if the deliveries were late so I'm not sure what the problem is (unless you were hoping to benefit from their error)?
The first question is really do you accept that they were right to deduct the sums in the first place for either or both machines. If you do, then its a moot point about there being two contracts If you are in dispute about the deduct in the first then you had best resolve this first before worrying about fixing the accounting issues. .
Hammersia said:
Countdown said:
That's interesting, thanksCollectingbrass said:
Hammersia said:
Countdown said:
That's interesting, thanksHammersia said:
Collectingbrass said:
Hammersia said:
Countdown said:
That's interesting, thanksI do know people who might make a better job of getting the next order out there on time though :-)
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