Upon a review of the Terms and Conditions of Supply and the director's personal guarantee that was used to support the debtor company's liability, it was found that these were incomplete and in parts unenforceable.

The debt itself remained enforceable, however, due to poor terms the process used to recover it was lengthy and costly for the client.

In deciding how best to deal with similar issues in the future, we discussed the possibility of conducting a full review of the client’s documents and procedures. The cost benefit to the client would be that in adopting new terms and conditions and supporting documents, and ensuring that they were used correctly, the risk of incurring a large debt, which would potentially incur large legal fees to recover, would be offset by the upfront cost of the review.

Please note this information is provided by way of example and may not be complete and is certainly not intended to constitute legal advice. You should take bespoke advice for your circumstances.

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