Solicitor fees for incomplete transaction

[Devdas73]

Hello thanks for reading this the issue is that i was in the process of purchasing a shop and was quoted 2500 for the all the work to be done. Unfortunately the seller decided not to proceed and deal fell through. The solicitor’s engagement letter states the following:

The final invoice has come and the demand is for 2000 it seems unfair to me that in the contract drawn up it states that before exchange 50% of the fees would be payable which would be in the region of 1250 +/- due to variations. But 2000 seems to significant variation.

 

Question is does the Sale of goods act apply to solicitors as it stated that the price charged should be reasonable

 

The Supply of Goods and Services Act 1982 states that when work is carried out by a trader you can expect it to be done with reasonable care and skill, in a reasonable time for a reasonable charge.

Second question is is there a breach of the Unfair contract terms act in this case as the other party is obviously not following the clause set.

 

The Unfair Contract Terms Act 1977 and the Unfair Terms in Consumer Contracts Regulations 1999 allow you to challenge terms that may be unfair or unreasonable and/or restrict your statutory rights. When you enter into an agreement for work to be done that costs over £35 you are entitled to a minimum seven-day cooling-off period to be notified in writing. When you find that work carried out is unsatisfactory, or takes too long to complete, you may be able to claim compensation.

 

 

I am not refusing to pay the fees but it seems unfair to have to pay almost the full amount for incomplete work. Another way to consider would be buying half a product and paying for the full price.

 

Having contacted the solicitor they are stating that work has exceeded the 50% level even though contracts have not been exchanged therefore I am confused where I stand. Any assistance will be really appreciated.

 

Contract extract

 

Should the transaction fail to proceed to a completion then firm's charge for that transaction will be much lesser as is the sum reasonable having regard to the work done by that stage in the transaction, together with the VAT and any disimbursements incurred. We estimate our charges in the event of abortive matters to be as follows:

 

·Withdrawal or matters being aborted before submission or receipt of papers 30% of our fees quoted in our estimate.

·Withdrawal or matter being aborted after receipt of papers but before exchange of contracts 50% of our fees quoted in our estimate

·Anything after exchange of Contracts our entire estimate of fees quoted in the estimate together with any additional fees having regard to the additional work undertaken owing to the protracted nature of the transaction

[rebel11]

Thread moved to the correct forum.

[Ganymede]

Have you got a breakdown of all the costs and disbursements?

 

Did you know about how much you would have to pay if the purchase didn't complete before you signed the agreement?

[Devdas73]

Hello Ganymede i have requested a breakdown but have not been provided one and have requested one again and second question about being aware the I am following the contract (engagement letter) the solicitor did not explain this upfront in the first meeting. I did not expect the seller to pull out but these things happen.

 

But as mentioned above the engagement letter states "Withdrawal or matter being aborted after receipt of papers but before exchange of contracts 50% of our fees quoted in our estimate" the confusion I have is that contracts were not exchanged and still I am supposed to pay more than 50%.