Job cancelled without written contract. Where do I stand?

I'm in a pickle. A client has just cancelled a a large job 2 weeks from the start date. There was no written contract between us but there was a string of emails, a final confirmation of booking by email and a purchase order number from the client.
This is a very big client who also happens to own 50% of my direct competitor. No prizes for guessing who is getting the job now. It's a tricky situation indeed.
I considered taking it on the chin but I have put so much work and time into this and to be frank don't want to seem like my business can be pushed around so easily. I wrote to the client and told them that when I receive a the written cancellation I will still be invoicing the full amount.

Anyone know what the legal ramifications are?

Icarus

Have a look at the Electronic Commerce Act 2000. Contracts agreed electornically have the same weight as those on paper. You may have some comeback there depending on what was agreed in the emails and what the termination clauses were.

See [broken link removed]

C

Ouch, that's very bad form. My pride would say fight! My accountant would say spend the energy and money chasing new good clients.

Invoice them anyway and follow up with a solicitors letter when the credit terms run out. You lose nothing by doing that.

While electronically agreements might legally have the same weight as those on paper it has yet to be fully tried out in the courts. If there is no clear precedent then you are looking at a long, messy legal fight with no sure outcome.

I am sure you don't need me repeating it but the lesson is contracts, contracts, contracts!
And if possible get a deposit.

I don't think it's a question of electronic agreements vs paper agreements. Was there any terms of business (including cancellation terms) agreed between the two parties?

Rainyday:
The unfortunate answer to that is no. Yes I know it's a mistake. Much business in my line of work is done without contract and while it's a very aggresive business arena, situations like this are actually quite rare.

I have asked to be given a written cancellation and an explanation, especially after so much work and at such a late stage. When I got their phone call to cancel they said that I knew why I was being pulled off the job but that no-one was going to say it out loud. It seems that I have been pulled of the job because my competitor kicked up enough of a stink.

I'm not afraid of the rough and tumble of the business world and have had similar experiences but this just seems a step too far. Aside from the lost revenue, this event was a major break. I offered the best available product at heavy discounts and some free services. I may be young and a small fish but I don't want them to get away such bad form.

My hope is that by some miracle he will rather pay me to do the job than have to pay me a cancellation fee for not doing it.
In the absence of a contract and terms of business do I have any legal ground?

Icarus said:

In the absence of a contract and terms of business do I have any legal ground?

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From my experience the short answer is "No", unless, as rainyday pointed out, you have included a termination/cancellation clause in your agreement.

C

Big news. It worked. I just got a call saying that they won't be sending me a written cancellation because they want me to continue with the job. Talk about a roller coaster ride. I guess that even when you're the small fish it pays to fight.

Thanks as always for the advice.

Thats brilliant news mate. Fair play for fighting against it.

Well done Icarus. Great news

So have you notified them of your T&C's this time round?

Thanks guys, there was so much more than the money here. I'm delighted.

RainyDay said:

So have you notified them of your T&C's this time round?

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First thing on my list for start of business tomorrow!

Well done, but can you trust them?
Get a written (faxed) order and preferably a deposit.
You don't want to invest more time and money in this (no matter how much of a break it is) only to find they cancel again!

MugsGame said:

Well done, but can you trust them?
Get a written (faxed) order and preferably a deposit.
You don't want to invest more time and money in this (no matter how much of a break it is) only to find they cancel again!

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I know, my sentiments exactly. I'm getting a copy of the purchase order and have told them I want payment in advance. Fingers crossed!

Well done Icarus nicely played, kudos to you