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5.5 Termination. Even though the business is in fact not delinquent, its client does not know that. "I wanted to thank you for your help. We just sent you an email. Still, in this one case alone, her $43 Veeto membership returned her $4,459 in avoided Regus early termination fees, lease payments, and forfeited deposit fees paid to Regus. Note the stats on this post: almost 2,500 views! Not every term is taken literally, however. I recently received a suspension of service notice saying that I would need to pay a past due payment, but I disregarded it as it was sent erroneously. From inside his pocket, his phone vibrated once to alert him of a new email. You could argue that misrepresentations were made during the contract negotiations, and therefore you would never have formed the contract but for the fraud. This happens to thousands of Regus customer every month. Regus supplied office accommodation to Epcot (an IT training provider) on Regus’ standard terms and conditions of rental. The nice thing about a breach of contract claim is that you might be able to terminate the contract and also sue for damages--for example, whatever costs you incurred as a result of Regus’s breach, like relocation expenses, economic losses from interruption of your business operations, and any higher expense you might have to pay for a replacement office during the period of your breached Regus contract. And again, there is just no legitimate reason for it. Yet Regus sends these emails. If you fall behind with rent/deposit or don't pay by the required dates then that means YOUR in breach of contract and the landlord may also add his costs to recover the money you owe. This was an email saying that service had actually been suspended, after the recipient failed to make that allegedly past-due payment after 24 hours. I could not book, On November 10 [the receptionist] and [the receptionist's sidekick, I am guessing] complained to me that I was asking them to print too much and it was hard for them to drop everything for me and could we please set a turnaround time. Both parties to a contract, it seems, should have a fair shot at either getting what they were promised or getting commensurate compensation when they do not get what they were promised. Before this right can be exercised, the breach must be legally established. A breach does not on its own automatically discharge a contract. The more cash Regus can show on the books now, the more attractive it can make itself appear to a potential buyer. Breach of Contract Disputes The financial advisor whose own case inspired the first story above said something like…. If Regus threatens to cease providing your services, through no fault of your own, this might be grounds for you to terminate your contract immediately on the basis of an anticipatory breach by Regus. So, if I am that financial advisor in San Francisco, and I run a company that employs 20 people at my Regus office, the threat of suddenly being locked out of our office could be detrimental for my business. don't be fooled by the well known brand they are awful I went to the front and told [the receptionist] and [the office manager] that I couldn’t believe that this woman had been waiting there so long and nobody had told me. Our lawyers are happy that Regus are unquestionably in breach having misrepresented the contract and induced us to sign. It is too slow to look up each potential day and time specifically.​. Please settle your account without further delay. Man, that would be dirty. Footnotes for this article are available for download in the formatted PDF at the end of this page. Since July 30, some 97 entities connected with Regus Corp. have filed for Chapter 11 bankruptcy protection, including seven locations in North Texas. This uncertainty of resource availability reminds me of the disastrous bank runs of 1930 and 1931, which led to the Great Depression. The downside of the safer approach would be that Regus could always give you that assurance, and thereby defuse your basis for terminating the contract and leaving. Since Hannah is an attorney, this is not the first question she asked, because she already knew in her case that the answer was yes. You don’t have to be a legal expert to see that Regus’s reported policy of charging its clients add-on fees whenever those clients fail to notify Regus of its errors is crazy. 50% off April & May and add 3 months on the end of the contract 50% off April & May and pay the balance over the remainder of your contract Downgrade to a smaller office and add the balance onto your contract 3 wins for Regus - … Now, that might seem benign at first, but consider this reversal. In a breach of contract suit, common defenses include: Misrepresentation or fraud. If the answer is yes, then according to this section, Regus could arguably terminate the lease immediately, and Hannah would still be liable to pay the remaining $3,861 due under that lease. Here is the background on it. Do you know? It may allow the other party an option to treat the contract as discharged if the breach is sufficiently serious. It is clear that there are a lot of people who feel wronged by Regus. 1. n. failing to perform any term of a contract, written or oral, without a legitimate legal excuse. Just in case a disgruntled member does not get wrapped up in the closed-door confidentiality of arbitration, Regus wants to cover its bases and attempt to silence all of its members. This does not apply to contract's renewal or expansion. That might strike you as a Debbie-Downer analogy to make, but you should remember that Regus leases space to business owners who probably depend entirely on their business for their livelihoods. The phone was not hooked up. Like many big companies in the US who occasionally run afoul of their disgruntled customers, Regus knows that refusing to immediately satisfy a Veeto demand would result in an immediate lawsuit, bankrolled by Veeto. [The receptionist] she said she called once and it rang, but it didn’t matter because the phone wasn’t connected. Again, one-sided contracts deserve the characterization "unfair" when there does not seem to be a better word for them. This is bad for Regus for four reasons: Run a free Regus Contract Analysis with one of our Veeto Experts and see how you can leave Regus now. Again, by contrast, nowhere does this lease agreement preclude Regus from pursuing the member should he fail to hold up his end of the deal by not making his agreed upon payments. We insisted that we would need to have been informed of such an unusual contract term. Meet one disgruntled Regus member who got out of her contract without paying early termination fees She is an attorney in California, and we will call her "Hannah." I want to cancel the contract based on this and being mis-sold and they can find a new tentant but apparently they haven't breached their terms and refuse to release me from the contract. Nevertheless a clause which attempts to leave a customer of whatever type without a realistic remedy for a serious breach of contract runs the risk of unreasonableness (Regus (UK) Ltd –v- Epcot Solutions Ltd) 12. Compensatory damages (also called “actual damages”) cover the loss the nonbreaching party incurred as a result of the breach of contract. The first rule of Regus membership--well, the 2.9th rule, really--is that you cannot talk about Regus membership. On May 4, 2005 a Civil - Unlimited - Breach Of Contract/Warranty case was filed by (Subcribe to view) against (Subscribe to view) in the jurisdiction of Orange County. It leases virtual offices to business owners who need things like a business address, a place to occasionally meet with clients, and a receptionist to answer the phone. This is why, in her own words, Hannah, a former Regus member, decided that it was time to break-up with Regus: On November 5, 2015, I had a day office. Then, about 36 hours later, she received an email saying that her service had been suspended. Had Regus honoured agreed terms we would have remained a Regus client in a smaller offices to term end giving us the flexibility we negotiated and agreed. That time-consuming part. If you are really good at being the bad guy, then why pretend to be the good guy? Most Regus customers therefore actually share the same office space and attendant resources with other Regus customers (called "Regus members"). What should you do? With this in mind, consider whether you prefer the more aggressive approach--which is to terminate immediately--or the safer approach. Was this an automation error or a strategic threat? A condition is an essential term in the contract, a term that is so important that without it one or other of the parties would not enter into the contract. Regus would rake the member over the coals trying to recover whatever fees it expected the member to pay. breach of contract. Compensatory damages are damages for a specific amount of money intended to compensate the non-breaching or innocent party for losses from the breach. Thus, it seems that quite a bit of people end up getting hit with an extra three months of rent beyond when they probably were thinking they would be done with Regus. that any breach by You of this clause shall constitute a material default, entitling Us to terminate Your agreement without further notice. Suppose that the client from Hannah's strike 1 or the clients from strike 4 deciding not to hire Hannah because they felt that Hannah was unprofessional--in the case of strike 1, because the client had to wait for thirty-five minutes before Hannah greeted her, or in the case of strike 4, because Hannah was unable to book a meeting in time.

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