The right to increase the price of your goods and services

Some businesses enter into long term contracts for the supply of goods or services with suppliers and very often one of the reasons for this will be to get some certainty on price. It may not suit the supplier to supply at a fixed price for the entire term, but the middle ground may be to agree a fixed price with certain specified agreed reasons for increases during the term.

It is tempting to say that you will agree the detail of the new prices with the customer during the term of the contract so you can think about it later, BUT BEWARE - in English law it is not possible to agree to agree. In real English this means that if you have signed a contract to agree a new price with your customer in the future, unless the customer agrees to that new price, you will only be able to supply at the old price. Also, you will not be able to sue the customer for not agreeing to the new price. Depending on the wording in the contract, the customer may still have to try to agree a new price with you (but the wording has to be very clear).

Making the most of your terms and conditions

Most businesses understand the need to get a set of terms and conditions in place to set out the basis on which it sells its goods or services. This, however, is only half the story! Just as it's important to have the right processes in place, it's also necessary to make sure that your customer has had the chance to see the terms and conditions before they actually agree to purchase your goods or services. This may sound obvious, but a common mistake of most businesses is to refer to their terms and conditions on their invoice and if this is the only place that the terms get a mention, in most cases, it is too late! (there are some exceptions to this, and there is no harm, referring to your terms on your invoices as well as in all other sales documentation).

Do contracts need to be in writing?

Written contracts are commonly used in business to establish a formal legal relationship and to set out the terms of any agreement between the parties.

Businesses should be aware however that whilst there is no legal requirement for some contracts to be in writing, at the other end of the scale, the law requires that certain contracts must be in writing for them to be recognised and enforced in a court of law (e.g. transfers of shares or sales of property).

Sometimes the law goes further and says that certain written contracts also need to be signed in a certain way, or they too, albeit written and signed, may not be enforceable.

I Own What I Paid For… Don’t I?

Not always

This is a common misconception. There are some instances where even though you have paid a consultant to design a logo, or any other type of design, or to provide any other type of work for you, some aspects of it could still belong to your consultant.

Why not?

This is mainly because of an area of law called copyright, which gives the creators of certain work, the right to prevent others from copying the copyrighted aspects of that work. If copyright exists in the logo or designs created for you by your consultant (which it usually will), then unless there is something in writing to say otherwise, your consultant will own the copyright in that logo or design or other work. Even if there is something in writing, it must be clear and reflect your requirements.

Three Good Reasons for Having a Written Contract

Following on from last month's article: Standard Terms - the bigger picture in a nutshell, you may recall that I said, if you are selling goods or services, even if you have nothing in writing, there will be a contract - and that contract will be verbal.

So, I hear you ask, if a contract exists anyway, why go to the trouble and expense of getting something in writing (such as some terms and conditions). Well, here are three good reasons:

The Data Protection Act 1998 – What’s it all About?

Employment Law Changes April 2011

FORTHCOMING EMPLOYMENT LAW CHANGES - APRIL 2011

Statutory maternity, paternity and adoption pay increase
3 April 2011

The standard rate of statutory maternity, paternity and adoption pay increases from £124.88 to £128.73 per week.

Additional paternity leave and pay comes into force
3 April 2011

Provided that the mother/primary adopter returns to work, employees who are fathers, or spouses or partners of mothers and employees who have been matched for adoption and are spouses or partners of the person taking adoption leave are entitled to take additional paternity leave of up to 26 weeks in the first year of their child's life or the first year after the child's placement for adoption. They may also

It's Not Rocket Science

It’s not rocket science……

A short article by Tracey O’Connell of Lawpoint, discussing legal planning and risk management

A manufacturing client once inadvertently agreed to supply a space rocket part on the customer’s terms. By agreeing to the customer’s terms, the manufacturer was unknowingly agreeing to accept unlimited financial responsibility for any discrepancies or defects in the part. This extended to responsibility for almost every failure by the manufacturer, no matter how minor or how remote that failure was from causing the customer loss or damage (e.g if late delivery of the part by one day held up the entire space programme).

Employment Issues

AM I EXPECTED TO PAY MY EMPLOYEES IF THEY ARRIVE LATE OR CAN’T GET TO WORK AT ALL IN BAD WEATHER?

Staff Sickness

AN EMPLOYEE HAS RECEIVED A MEDICAL STATEMENT FROM THEIR GP INDICATING THAT THEY MAY BE FIT FOR WORK. WHAT DOES THIS MEAN?

SignPost HR answers all of your HR concerns...

Did you know that the average employment tribunal settlement figure during 2010 was £10,000!

Do you employ staff?  If so, then don't take the risk of something going wrong.  Here at SignPost HR, we can help look after all of your HR requirments to ensure you avoid any nasty surprises.

Tips on how to Avoid an Employment Tribunal

Simple steps you can take to help protect your business against the costs of going to an Employment Tribunal.

With the average unfair dismissal award now costing £9,000 you cannot afford not to deal with your employee problems seriously. Not only does a successful unfair dismissal claim hit your pockets financially with award settlements and legal costs but it also costs you management time in preparing for and defending a claim and also may cost you the reputation of the Company.

National Minimum Wage Increases

Q: Are there any changes in the area of Employment Law I need to be aware of to remain legally compliant?

National minimum wage rate increases - Each October the national minimum wage rates are increased. Additionally, this year there will be a change in the age classification for the adult minimum wageband. The adult worker rate now includes 21 year olds where previously this band started at age 22. This year also sees the introduction of the apprentice minimum wage for apprentices under 19 or apprentices 19 or over in the first year of their apprenticeships.