I would line to cancel a contact agreement
Hi, In January this year I agreed to sell my hummus production business to amothrr entity. The agreement was for 5 flavours of hummus which were listed on the contract. I wpiuld cease manufacturing this k& they would pay me a lump sum of R26 000 for the machines, recipes & the client list .They would also pay me a royalty payment. EAch month. The payment of R 26 000 was paid late and in installments which we did not agree to. To ensure a continuous supply of hummus to existing clients, we agreed that our labels could be used in the short term whilst they were sorting out their labels. This has not happened. The company 11 months later is still supplying hummus using my logo, brand , logo & bar codes. I have previously asked them to please cease using our company labels as we are no longer producing the product & the integrity of my brand could be affected. They have also failed to pay the commission on the dates agreed. We got our first payment 3 months after they started producing After continuous nagging we received our second payment for 3 months after. We have again not received royalty payment s since June. Can I cancel this contract. How do I stop them using my company name on the product?
Hello. You can cancel a contract if there is a breach of the agreement. You can then ask for specific performance ( eg ask them to stop using your logo etc ), and/or damages ( unpaid royalties etc ). Have a look at the agreement. There should be a clause titled “ breach “. It will stipulate what measures are to be taken if the other party does not keep his/her side of the bargain. If there is no such clause you can cancel anyway if you are certain that they have breached the terms of the agreement. You will send them a letter of cancellation detailing the breach and the remedies you want. If they do not agree or respond to your satisfaction you will have to take civil action against them at the Magistrates Court. If your claim is less than 15000 rand you can proceed cheaply at the Small Claims Court. All the best.