legal situation regarding proforma payments

[redcrx]

Im a director of a small company. In July we were aksed to quote on a substantial order (a quarter months turnover) for a customer renowned for being a bad payer. We quoted a competetive price compared to what he usually pays due to the very large quantity. The buyer was told that all invoices are to be profroma. the customer then placed a signed order to cover and an invoice for the total was issued by ourselves
A week later he claimed to be in desperate need of 10% of the order and asked if we could supply that first if he sent a cheque just to cover that.
now 3 months later he is still not paying for the balance. He claims to need the parts we have but his boss does not have the funds.
Normally i would have cut my losses on the first 10% and just refused to supply any more material but when we cut the first amount it was more cost effective (in keeping with the original bulk discount) to cut about 40% of the order and keep the difference in stock.
Im now left with a customer who is unwilling to give a firm payment date and stock which is of no use to anyone else.
Do i have any chance of being able to get the remainder of the invoice payment from him?

[bednobs]

i dont understand what proforma means in this conyext

[redcrx]

items only to be dispatched after payment made in full. As a company most customers of ours get a 60 day account and new customers get a pay against invoice. This customer placed the order knowing that they had to pay to receive the goods.

[jostar]

Did you acknowledge the order with your terms and conditions of sale or did you put your terms of this order in writing to them. If so I would have thought that you could then pursue the matter through a solicitor or the small claims court.

[redcrx]

Quotation, further emails, their order and invoice all state proforma payment.
Just thought Id ask on here before seeking a solicitors advice.

[jostar]

Go get um. Best of luck!!

[Mrs_Pegasus]

Normally, terms of sale are that the goods remain the sellers until payment has been received. This would mean that unless you specified that the goods were unique and that they were bound to buy the goods, there is not a great deal you can do, unless you go to court, which will cost money and if this customer is bad with money the chances are you will lose even more. Even if the court went in your favour, you cant get blood out of a stone, you also had knowledge of his bad payment history.

[Oneeyedvic]

Interestingly, a proforma invoice does not pass title of the goods over to the customer. Therefore, even if he has paid for the initial stock, so long as your invoice has the correct legal terms & conditions, you would actually be able to recover the goods that you have already delivered.

Of course - that is legal theory - practice is a lot more difficult!