I am seeking a qualified contract lawyer with expertise in UK contract law, particularly in relation to small business agreements and automatic renewal clauses. My company, a micro-business with fewer than ten employees, is currently in a dispute with an IT services provider regarding contract termination and automatic renewal terms. I need legal guidance on our rights and the enforceability of the provider’s contract terms.
Background:
We have been a customer of this IT provider for six years, and our service agreements have now reached the end of their initial terms. However, the provider is insisting that we are still bound by an automatic renewal clause due to a failure to provide notice within their specified period. They are demanding full payment for the remaining contract terms before agreeing to offboard us.
The key clause in their Terms & Conditions is as follows:
18.1 This agreement shall commence on the Effective Date. Unless terminated earlier in accordance with this clause 17, this agreement shall continue in force for the Initial Term and shall automatically extend for the same period set out in the Initial Term (Extended Term) at the end of the Initial Term and at the end of each Extended Term. A party may give written notice to the other party, not later than 90 days before the end of the Initial Term or the relevant Extended Term, to terminate this agreement at the end of the Initial Term or the relevant Extended Term, as the case may be.
Key Legal Questions:
1. Enforceability of Automatic Renewal Clause – Given that we did not sign a renewal agreement, does this clause hold up legally?
2. Applicability of Consumer Protection & Small Business Protections – As a micro-business (fewer than 10 employees), do we have protections under UK law or Ofcom regulations that would prevent the provider from enforcing this automatic renewal?
3. Legality of Payment Demand – Can the provider legally demand full payment for the entire renewed contract term, or would this be considered an unfair contract term?
4. Best Course of Action – Should we negotiate, dispute the claim, or pursue legal action to terminate the contract without penalty?
I am looking for a legal consultation and written advice outlining my options and the best approach to resolving this matter. If you have experience handling similar disputes, I’d like to hear from you.
Budget: Open to proposals based on experience and estimated work required.
Looking forward to working with an expert who can help me navigate this situation effectively.
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