Agency have put wrong daily rate on contract and have only just noticed...2 months in

[billybiro]

Wrong.

If it's abundantly clear the price was a mistake and not intended to be marketed at that price ( ie website showing HD TV for £1 ) then the price is not legally binding.

And if I do see TV advertised online for £1, exactly how do I verify the advertiser's intentions?

[SussexSeagull]

So if it has been two months you have presumably been paid one invoice and put in another? If so as others have said I would be questioning their margin (unless you are on £1,000 a day or something) and trying to get a new rate.

As in no small part the mistake was on their part I would tell them you will make an adjustment on the next invoice and not just hand them the money back on the spot.

Give them a bit of an incentive to keep you working at the client as well.

[northernladyuk]

And if I do see TV advertised online for £1, exactly how do I verify the advertiser's intentions?

They will clarify their intentions themselves when they cancel the order and refund your £1.

[ImaginativeTruth]

Contract

So, lots of opinions and advices - here is mine.

1. In law, the terms of your agreement are contained in the four corners of the contract. Therefore the rate is not 'wrong' - it may be different to what was contained in correspondence, but that is not relevant (see below).
2. If the the tenants of a contract are not met - capacity, intention, offer, acceptance, consideration then the contract may not be fully valid, or invalid in parts. I don't see how this would arise as it has been 'performed' on.
3. It could be argued that the other party had no intention to enter into a contract at a rate different to that contained in correspondence, however on this point I refer you to (1). You could argue they are simply seeking to exit a contract they regret signing. Regret does not carry in law. Also, see (4) below.
4. Custom and Practice - you have a written valid contract, and both of you have completed 'specific performance' of it for a period of time, if it were argued that the contract is 'wrong' on the basis of intention - you could counter argue that they and you varied the contract by custom and practice - carrying out a change / variation of terms for a period, without either side issuing notice of breach.

PS Purchasing items offered for sale is not legally in the same contract position as the above. In the case of a TV on sale for £100. This is not an 'offer' that you can 'accept' and therefore complete the contract. It is an 'invitation to treat' - that is, you are invited to offer £100 for the TV in which case the seller 'accepts' your offer.

[Bee]

Reissue the contract with the agreed rate and pay the money back.

History:

I started a 6 month contract 2 months ago and had agreed a rate (x) with the agency. When my contract came through it was rate (y) (an additional £100 per day.) The agency have effectively put the client rate down that they are charging me out at rather than what I agreed with them. The agency and I signed the contract and they have been paying my rate (y) for the last 2 months. However, they've just realised what has happened and are now panicking.

I'm looking for people's onions here. I figure my options are listed below. I don't want to hear the usual "you agreed a rate with them blah blah blah," I'm interested in what you think of my options / questions below and if you can think of any others :-)

Option 1
The honest part of me says let them re-issue the contract, we come to some agreement about me paying back the extra money and leave it at that.

Option 2
They re-issue the contract, write off the difference between rates as a gesture of good will and I carry on with a new contract.

Option 3
Screw them. They made the mistake and I reap the rewards. Not sure if they could make my life difficult with the client though. Can the agency give me notice or does that have to come from the client?

Option 4
Get the agency to cancel the contract and go direct with the client at a new improved rate for both client and me. As it would be the agency cancelling the contract would that mean this is a workable option?

Thoughts, comments, suggestions welcome.

[measterbrook]

History:

I started a 6 month contract 2 months ago and had agreed a rate (x) with the agency. When my contract came through it was rate (y) (an additional £100 per day.) The agency have effectively put the client rate down that they are charging me out at rather than what I agreed with them. The agency and I signed the contract and they have been paying my rate (y) for the last 2 months. However, they've just realised what has happened and are now panicking.

I'm looking for people's onions here. I figure my options are listed below. I don't want to hear the usual "you agreed a rate with them blah blah blah," I'm interested in what you think of my options / questions below and if you can think of any others :-)

Option 1
The honest part of me says let them re-issue the contract, we come to some agreement about me paying back the extra money and leave it at that.

Option 2
They re-issue the contract, write off the difference between rates as a gesture of good will and I carry on with a new contract.

Option 3
Screw them. They made the mistake and I reap the rewards. Not sure if they could make my life difficult with the client though. Can the agency give me notice or does that have to come from the client?

Option 4
Get the agency to cancel the contract and go direct with the client at a new improved rate for both client and me. As it would be the agency cancelling the contract would that mean this is a workable option?

Thoughts, comments, suggestions welcome.

Point out the mistake. Ask them to send you a corrected contract for signing. Issue the agency with a credit note for the overpayment so far. At renewal you know their margin so you can bargain hard.

[contractmonkey]

UPDATE: OK, finally all resolved. I eventually got to the bottom of the rate % and I was given duff info. Strange that from an agency :-)

By the time they got it all sorted they had overpaid me £4800. I negotiated a reduced amount to pay back of £3300 for my inconvenience. Paid back over 3 months.

Contract just extended for another 3 months so a win win.

[northernladuk]

And a good lesson you won't forget?

[AnthonyQuinn]

Forget what you had verbally agreed. Pretend it never happened.

Dont even pick up the phone from the agency. Let them fix it how they can.