Mid-term price hike on contract

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aim

247 posts

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#151779 4-Sep-2014 20:00

Hi guys,

A general question hoping someone might be in the know - what can be done about a mid term price hike. I've signed up for a 12 month contract where the prices for certain aspects of the services have increased a solid 23%. Over night. Something I hadn't accounted for. Before I consult a lawyer to see what can be done I thought I'd ask here.

Some costs of the contract haven't changed, and the smallest price hike is 10.5% increase.

Is there anything I can do? Can I terminate, at the very least, on these grounds without penalty? Can I refute the hike and continue paying at the agreed upon price for the term of my contract? What are my options and am I best to seek legal counsel here. Costs for a lawyer probably will be outweighed by the savings here if I can get out without penalty.

Cheers,
aim

kobiak

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#1122118 4-Sep-2014 20:05

i'd start reading your contract to find out anything about price increase, if it was fix price contract at all.

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Inphinity

2780 posts

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#1122119 4-Sep-2014 20:07

It depends, some contracts will include a clause that pricing can be changed during the contract term, in which case you may struggle, although could argue a more reasonable notice period for the increase. If no provision for price increases is made in the contract, and the contract specifies t he price, you could have a good case to argue it.

johntynz

119 posts

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#1122126 4-Sep-2014 20:28

I would also be reading the companies terms and conditions of service, a lot reserve the right to change the prices of thier packages from time to time

Aredwood

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#1122225 4-Sep-2014 22:56

Is this contract for internet or sky TV by any chance?

mattwnz

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#1122234 4-Sep-2014 23:31

if you post the wording of the contract on here, people can give their opinion.

Kyanar

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#1122247 5-Sep-2014 02:16

Inphinity: It depends, some contracts will include a clause that pricing can be changed during the contract term, in which case you may struggle, although could argue a more reasonable notice period for the increase. If no provision for price increases is made in the contract, and the contract specifies t he price, you could have a good case to argue it.

An increase of 23% you could argue is unconscionable and get away with termination without penalty almost certainly.

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sbiddle

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#1122266 5-Sep-2014 06:20

It depends entirely on what the wording of the contract.