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VIC Commercial Rebate Agreement Not Being Honoured

Discussion in 'Commercial Law Forum' started by Matt8, 30 April 2015.

  1. Matt8

    Matt8 Member

    30 April 2015
    Likes Received:
    I have a rebate agreement with a commercial supplier, based on volume. Being in that I have a standard unit price with them and depending on the volume ordered for the month, I get a rebate. We set this in place early last year via a couple meetings and over email. By email it was set in place and agreed upon.

    The rebates were coming through fine. Now over the last 6 months, I haven't been keeping an eye on it and assumed they were still coming through. Today I asked can they please send me a statement showing all the invoices/payments/rebates.

    I was then informed that senior management determined that this agreement wasn't valid and it was cancelled late last year. I was never informed of this.

    Of course I was not happy to hear this. So there is around about $10,000 worth of rebates I had assumed that I had been credited for. Of course I should have been keeping an eye on this but I hadn't been.

    Being that we made the agreement, the agreement was set in place, I am in the view that I am owed these rebates which should be credited towards outstanding invoices. (I owe them about $30,000 within 30 day credit terms). Even though we never signed anything, should this agreement still be in place under contract law since since it was agreed on I was never informed that it was stopped after it started?

    Any advice on this would be appreciated.
  2. Sarah J

    Sarah J Well-Known Member

    16 July 2014
    Likes Received:
    Hi Matt8,

    1. What reason did they provide for thinking the agreement is not valid? (Is is because there was no written agreement, or is it because internal procedures within the company wasn't met, or is it because statutory law prevents these kinds of arrangements?)

    2. In reliance of this agreement, how much money (including cost of your own time) did you spend in promoting and selling the supplier's goods?

    Chances are, as long as legislation does not prohibit this kind of arrangement, the agreement is valid and enforceable. An oral agreement (especially one supported by written memos, texts etc.) is still binding on parties.
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