Frustration of contract

[Roddles]

I have a client who some six months ago signed a contact with a telecomms supplier for lines and calls. The contract was fixed for a period of three years. He is now being forced to move from his premises because the landlord wants to refurbish them and is looking to move into serviced offices where telecomms are provided and he just pays for calls. His present supplier is demanding a termination fee of thirty months at the average total monthly billing rate for the past six months including rental and calls. I think that this is frustration of contract and that no termination fees should be payable, or even if they are it should be limited to the costs incurred by the supplier. One would imagine that they can terminate the line rental contract with their supplier without incurring such penalties. I would be grateful if anyone could offer any advice.

[redcrx]

is his landlord paying him for costs incurred in moving? if so, this should be added into that negotiation.

[buildersmate]

It is true that a frustrating event is one which is not the fault of either party but renders performance of the terms of the contract impossible. But I reckon you are pushing your luck to claim frustration of contract here since your client is choosing to move to a place whereby he has decided he no longer the services.
What does the contract say about termination before the three year period - I cannot believe telecomms suppliers will not have thought to include such a clause to cover this possibility.

[boxtops]

He must look at the small print in his contract - this may be explicit in the terms and conditions.

[factor-fiction]

Sorry but I think this is not the telecom supplier's problem- it seems to me to be an issue between your client and his landlord. He may be able to negotiate a smaller fee though