Cancellation of contracts etc - general question

Associate
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27 Jun 2006
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Afternoon all - just a quick question whilst thinking about the VAT rise next January.

For example, if I took out a 2 year phone contract for £30.00 a month and the provider adds the extra 2.5% on next January, is that a change in the contract - I took out a 2 year contract for £30.00, not £30.75.

Yes I know its pennies in it but this is just a hypothetical question and a phone contract is just one off the top of my head. It also takes into consideration that the provider passes on the extra 2.5% to the customer (which to be honest I think most places will!)

I am guessing the answer is no, its not a change but as I have a week off, my brain had 5 minutes to wander off on its own :)
 
Associate
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Usually in contracts you sign the T&C's usually states any price hikes an such we shall notify you of 28 days in advance an they reserve right alter the price an such.
 
Caporegime
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Luton ;)
IMO no chance in hell you will be able to cancel a contract due to a government imposed tax rise. The company themselves are still providing the product/service at the same ex-VAT price so havent made any changes essentially to the contract - its not their fault that the relevant taxes/duties levied have changed...

When VAT reduced to 15%, did you not notice that your bills reduced for the same effect?

ps3ud0 :cool:
 
Caporegime
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For example, if I took out a 2 year phone contract for £30.00 a month and the provider adds the extra 2.5% on next January, is that a change in the contract - I took out a 2 year contract for £30.00, not £30.75.

You didn't take a contract for £30.00/month, you just think you did. You actually took out one for £26.09/month + VAT.

VAT changes will not invalidate any contracts.
 
Associate
OP
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Ooo good answer Mr Jack, can see that one being used by companies.....didn't think for one minute that it would be a get out clause of any contracts but like I said, 5 minutes rest for my brain usually results in stupid questions :)
 
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