Last night finally force myself to go for a weekday short run (have this idea for quite long but never put it into action). Thanks, to my poly pal Z.F. he was one of the encouraging factor, cos he ‘onz’ running with me and we agreed to meet in East Coast Park at 8pm.: p
After our run, hubby called. He said he need to make his way home as his parent was in trouble for signing a wrong advertising contract and need to pay 4k plus. He pick me up at about 10.20pm from East Coast Mac. This evening we stay in my-in-laws place till about 12am to understand and work on what we can do about it.
Situation
My in-laws are in a small business (stationery shop). Last month (September 2006) the advert company (a.k.a SBP in short) sent a letter stating the terms and conditions of the advertise service they provide in the 2-years contract. If they agreed just need to check the company information printed, sign and fax back to them.
As my in-laws are not well verse in English, therefore they mistook it as letter from the ‘Yellow Page’ which previously published they telephone and fax number wrongly and now is seeking their confirmation for the next issue. (Cos SBP logo is yellow and carry the word ‘Singapore’)
They quickly sign and fax it over as there is a cut-off date given. Who know just yesterday they received a invoice asking them to pay $4250 for the fist year edition (the whole contract is for 2 edition) and they are so shocked that they immediately seek help to fully understand the letters and discovered the misunderstanding they have. And to cancel the advert, my in-laws will still need to pay them $4250. ‘Why?’ Well the answer is simple cos they charge 50% of the contract as cancellation fee and the contract is for 2years.
2years = 2 editions
Each edition cost $4250
[($4250*2)* 50% = $4250]
* All the above exclude GST
Immediate action
They immediately went to M.P. and seek help on this case, as there is no way they can pay up this amount. Their business has not been good and every month they are actually losing money due to the stationery shop (history is that my hubby has already throw in 20k of his saving to help his parents, now they really dun have much).
Queries
There are a few things which I still dun quite get it.
1) If this is a 2 years contract which involves 8k plus business, why didn’t the company bother to sent some one to explain to them?
2) With only the fax copy (original still with my in-laws) and no counter sign on a amended phone number in the contract is the contract valid?
Follow up action
As hubby was not free, last night I was assigned the task of accompanying my mother-in-law to the advert company to check out if there is anything we can do about it (Father-in-law was advised not to go with us, just wait drove us there cos his temper was too big, we do not want to make thing look ugly at present stage). First thing in the morning… Arrive at the advert company:
CSx: ‘Hi, we have called yesterday regarding the payment of CSx advert’
SBP: ‘Ohh, you may come in first. Just pull the door’
‘Click’, wow what a heavy glass door I have a hard time pulling it. Walk up the stairs of the shop house (the office was pretty well decorated). Was greet by their staff, look okie quite friendly. Finally a lady, with long straight hair and look refine came in and talk to us. I start the conversation, in mandarin so that my mother-in-law will understand what we are saying.
I explained that the whole thing was misunderstand from my in-laws. Cos they mistook the whole thing as sent by ‘Yellow Page’, they really have no intention to take up such advertisement as the shop is not making any money.
The lady was nice enough to tell us that since they have sent out the invoice, if we will to cancel there might be a cancellation fee involved. She understand that for a small shop to pay this amount maybe too much, what she can try to help is for us to write and fax her supporting documents like account balance for the company (use to submit for tax declaration) and bank statement for the shop, to prove that it is really beyond the shop ability to pay for this advertising amount and waive the cancellation charges. She agreed to hold the reminder invoice till 25th Oct 2006 (Wed) for us, while we try to get all these documents prepared.
Feedbacks from my mum, why do some companies and government agencies forget the fact that not all Singapore citizens understand English? (E.g. age 45 and above.) Suddenly I realise, yap my mum got a point. Shouldn’t a contract be valid only if it is draft in the language understood by the person who is signing it? Or should the contract be only valid if the person who draft it / sent it out explain to the person who sign it? (Especially important for contracts that involve dollars and cents)