What to do if a vendor demands an increase in price for the next term less than a month before the renewal date but 60-day notice is required per contract?

UPDATED: Oct 1, 2022

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What to do if a vendor demands an increase in price for the next term less than a month before the renewal date but 60-day notice is required per contract?

We have worked with a vendor for the last two years, the first contract renewed

automatically no problem. Now, less than 30 days before the end of the

contract, the vendor is asking for $500 increase in price for the next term. They argue that the BAA signed 2 years ago is expensive. This puts us in a very frustrating situation as migrating from their service is impossible in 30 days and

will hurt our business. There is a term in the contract that 60 days written notice is required for any changes otherwise the contract renews automatically the vendor declines. How can I enforce this term?

Asked on June 28, 2018 under Business Law, North Carolina


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

If, as you write, 60 days written notice was necessary for a change like this but they only provided 30 days notice, they cannot get the increase: the terms of a contract are enforceable. If they will not sell you the service at the existing price and you have to migrate go a new service, you could sue them for compensation based on "breach of contract": e.g. for any lost business or profit due to disruption, for the increased cost of obtaining this service elsewhere, etc. Of course, litigation can itself be expensive and disruptive; consider trying to negotiate to a mutually agreeable compromise (e.g. maybe $200 more?) to avoid litigation and having to find a new vendor on short notice.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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