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Thread: Summons from creditor - Hardware

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    Summons from creditor - Hardware

    I am a small construction company owner who does tenders. I bought building material on credit from a hardware with the agreement that I will pay once I am paid. I then asked the owner of the hardware to give me a detailed invoice with quantities and price each for me to see how he arrived at the total but he failed to do so and only gave me the total price. This was after I realized that he inflated the prices.

    He has now sent a summons through a sheriff of the court. What is my recourse as I do not agree with the price?

    Thanks

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    Diamond Member Vanash Naick's Avatar
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    Usually when you are admitting to owing a part of that amount but not the entire amount and if this is your defence, then the court will grant judgment for the amount you admit you owe!

    You however state that your agreement was that you will only pay when you get paid, so this is a defence.

    Enter a notice of intention to defend, and when the creditor serves a declaration on you, a plea on merits. At the relevant paragraph you need to state that you place in issue the amount claimed and further that your agreement was that you will pay when you get paid.
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    Site Caretaker Dave A's Avatar
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    Did you submit a credit application?
    Is the agreement between yourself and the supplier in a written contract?
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    Diamond Member wynn's Avatar
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    You must set up tighter systems in future!
    You must get a written quote from the hardware supplier (Usually only valid for 30 days) then when you quote the contractor make sure he understands the quote is only valid for 30 days as well, sometimes they come back after six months and want the material at the quoted price.
    Obviously you let it be known that after the validity period if there are no increases you will give him the material at the original quoted price, if he wants, give him a letter from the relevant supplier showing him that the prices are up.
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    Platinum Member sterne.law@gmail.com's Avatar
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    Are you an entity such as pty or a sole prop/partner?
    Anthony Sterne

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    DISCLAIMER The above is merely a comment in discussion form and an open public arena. It does not constitute a legal opinion or professional advice in any manner or form.

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    Thanks for your advice Vanash and Wynn

    Q : Did you submit a credit application?
    Is the agreement between yourself and the supplier in a written contract?
    A : No I did not submit a credit application and the agreement is not written anywhere, we have a mutual understanding as we have been doing this over the past couple of years and there has been no problems whatsoever.

    Q : Are you an entity such as pty or a sole prop/partner?
    A : Yes, I am a close corporation

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    Diamond Member Vanash Naick's Avatar
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    As it stands, you have 10 days from the date that summons was served upon you to enter an appearance, failing which, in all probability, the creditor will file for default judgment. I suspect that you were served with a simple summons. If so, once you have entered an appearance, the plaintiff will file a declaration, you are then required to serve and file a plea on merits.
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