Basic Contract Law Question

Hi Guys,
I have a question I need help on.

I have my children in a creche, and paid a fixed rate each week, no formal contract in place as such just and agreement on how much was to be paid each week and I set up a direct debit.

New manager started and asked me to pay a 40% increease as he said the old manager had calculated the price I was to pay wrong.

I think I am paying a fair price, Is it legal for the creche to do this

Reg

I guess if you don't have a contract then you are at liberty to take your business elsewhere if their terms do not suit you.

@regvw

You do not have to have your contract in writing.

But you need to establish what the terms were.

There seems to be agreement on price but X is now saying that was a mistake.

So you have all the elements Offer / Acceptance / Consideration and Intention to Create legal relations.

What was the length of time the contract was for? Was there anything about price increases?

If you can recall that this was for a number of months - then they are tied to that.

They need to negotiate.

The contract doesn't have to be written to be legal. To me, if their fees aren't making a profit form them then everybody will have to pay more. You say the fee is fair, but whose to say, how about negotiating 20% and that it's set for the next year or two?

A service provide can hike the rate. Unless this was agreed as the rate for the year, the price can be upped at will.

All you can reasonably expect is that you are given reasonable notice of any increase in fees, and maybe time to make alternative arrangements.