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Thread: Can a CC be blacklisted? Can a director be blacklisted? Is a signed quote a contract?

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    Question Can a CC be blacklisted? Can a director be blacklisted? Is a signed quote a contract?

    Good day,

    My CC is owed money from another CC. They signed up with us to provide business services for a minimum period of 12 months. One of the directors signed the quotation and they made several monthly payments towards the services.

    About half way through the 12 month period they stopped paying us. We continued to provide services for 2 months in the hope that they would pay.

    On contacting the director who signed the quotation, he says the business is being liquidated and refuses to pay for the 2 months that are still outstanding let alone for the full 12 month contract. He also goes on to say that a signed quotation is not a contract.

    Any suggestions as to how we can recover what we are owed. Can a CC be blacklisted? Can he personally be blacklisted? The amount we are looking to recover is about R10,000 (for the unpaid 2 months).

    Cheers
    /R

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    Site Caretaker Dave A's Avatar
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    First of all, CC's don't have directors - they have members.

    To answer your main question - Yes, you can blacklist a CC. However, if it's being liquidated, there seems little sense in it. It's going to get listed on the credit bureau(s) records as a result of the liquidation anyway.

    If you have a clause that indicates acceptance of the quotation forms the contract - yes - the signed off quote or order does form a contract. In fact, merely placing an order/accepting an order forms a contract - it's the nature of the terms that might need scrutiny.

    When it comes to claiming against the member - Unless your service contract/acceptance of quotation incorporated a surety, you will ordinarily not have recourse against the member provided they've fulfilled their responsibilities as a member of the CC.

    I'd suggest the next step is to get some information about the "alleged" liquidation of the CC. (I use the word alleged because claiming that a CC is being liquidated when in fact no such process has been started has become quite popular as a means of fobbing off creditors).

    Questions to ask of the member are:
    • Who applied for liquidation?
    • At which court?
    • Who (the lawyer) is acting for the plaintiff?
    • What was the reason for the application?
    • Has a liquidator been appointed yet, and if yes, their contact details?
    • Have you been listed with the liquidator as a creditor of the CC?


    The good news is if the CC is being liquidated, you will be able to claim not only what is owed so far, but any loss of profits that you shall incur by them failing to honour the balance of the contract.
    Last edited by Dave A; 21-Dec-10 at 11:29 AM.

  3. Thanks given for this post:

    Martinco (21-Dec-10)

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    Quote Originally Posted by Dave A View Post
    First of all, CC's don't have directors - they have members.

    To answer your main question - Yes, you can blacklist a CC. However, if it's being liquidated, there seems little sense in it. It's going to get listed on the credit bureau(s) records as a result of the liquidation anyway.

    If you have a clause that indicates acceptance of the quotation forms the contract - yes - the signed off quote or order does form a contract. In fact, merely placing an order/accepting an order forms a contract - it's the nature of the terms that might need scrutiny.

    When it comes to claiming against the member - Unless your service contract/acceptance of quotation incorporated a surety, you will ordinarily not have recourse against the member provided they've fulfilled their responsibilities as a member of the CC.

    I'd suggest the next step is to get some information about the "alleged" liquidation of the CC. (I use the word alleged because claiming that a CC is being liquidated when in fact no such process has been started has become quite popular as a means of fobbing off creditors).

    Questions to ask of the member are:
    • Who applied for liquidation?
    • At which court?
    • Who (the lawyer) is acting for the plaintiff?
    • What was the reason for the application?
    • Has a liquidator been appointed yet, and if yes, their contact details?
    • Have you been listed with the liquidator as a creditor of the CC?


    The good news is if the CC is being liquidated, you will be able to claim not only what is owed so far, but any loss of profits that you shall incur by them failing to honour the balance of the contract.
    Hi Dave,

    Thank you so much for you most helpful reply. We shall be askign the questions you listed. Thanks again and hope you have a good day.

    Cheers/

    R

  5. Thanks given for this post:

    Martinco (21-Dec-10)

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