What's the point of a contract?

[Specialone]

Had an email off O2 today, it's putting my monthly contract price up by about £2 a month, I only took out the contract 3 months ago.

I don't see the point of contracts if both parties can't keep the same terms for the duration of it :confused:

[Bri w]

Check the print in the contract. You'll find they can change the price mid contract...

[Spank86]

Had an email off O2 today, it's putting my monthly contract price up by about £2 a month, I only took out the contract 3 months ago.

I don't see the point of contracts if both parties can't keep the same terms for the duration of it :confused:

It's in the contract that they can do it.


That's the trouble with contracts, you agree to all of it not just the bits you skim read.

[Mr Speirs]

Na I'm with you Phil. Changing the price mid contract is balls. I agree what's the point?
Sky did the same to me.
It's not like you can turn round mid contract and say to them you know what? I wanna pay £2 less a month. Cheers

[Specialone]

Check the print in the contract. You'll find they can change the price mid contract...

Oh I know they can mate, it's just I don't see the point of a contract if they can change it before its ended.

[Spank86]

They haven't changed the contract, you still have the exact same contract with them, they've just taken advantage of one of the clauses in the contract.

[Specialone]

Na I'm with you Phil. Changing the price mid contract is balls. I agree what's the point?
Sky did the same to me.
It's not like you can turn round mid contract and say to them you know what? I wanna pay £2 less a month. Cheers

Yeah sky have done it to me a few times but in fairness im on a rolling 'contract' so can cancel anytime.

I'm paying £64 a month now on sky now I've got HD, think I'm gonna lose the sports at some point, I hardly watch it.

[tigersaw]

I cancelled my O2 yesterday when I was told it was going up and got a new one with Tesco, which is err, O2.
Tesco told me they have never (yet) put the price up during the term

[Mark_h]

Read your contract. You may have an clause that lets you out of your own obligations if they increase the price by more than x%.

[Littlepeahead]

Yeah sky have done it to me a few times but in fairness im on a rolling 'contract' so can cancel anytime.

I'm paying £64 a month now on sky now I've got HD, think I'm gonna lose the sports at some point, I hardly watch it.

I'm love my Sky Sports. I'm going to upgrade to HD. I don't really like sport but Alastair Cook's eyelashes and chiselled cheekbones are easily worth £52 a month.

[joshwalker094]

Three did that to me earlier this year, then a month later my price plan is £1 cheaper in shops than my original monthly price and the £99 up front cost I paid turns to £69 up front and now £29.
I have three contracts phones with them, no loyalty or anything like that!!

[kaivalagi]

Read your contract. You may have an clause that lets you out of your own obligations if they increase the price by more than x%.

You would hope that is the case, otherwise they could lock you in and steal you blind.

If I had my monthly rate go up I would expect to be able to leave the contract as it's not the cost I originally signed up to.....

[Specialone]

O2 are by far the worst company for negotiating with, I've been with them over 10 years, when my previous contract had ended, I wanted a new iPhone 4s, 02 wanted £99 for the phone and £36 a month for unlimited calls and texts, 1gb of data.
Car phone warehouse had the same O2 contract, with same minutes everything but phone was free, I rang O2 and said will they match the offer, they flatly refused to offer anything more than their current deals, so I went with car phone warehouse.

[missyburd]

Mine's gone up by 50p and that was bad enough, remember thinking exactly the same thing!! :rolleyes:

[Specialone]

My van insurance has gone down by £120 though :)

But as always, save in one hand, they take it out the other, Eon have told me now my energy bill is gonna be about £108 more expensive based on last years consumption :(

[Fallout]

It's rubbish when that happens. It properly sucks, but that is the point of the contract. The contract isn't for your benefit. It's almost entirely for theirs. Asking what the point is makes no sense really because 'contact' doesn't mean 'consistent payment' or 'set of variables that don't change'. It means an 'agreement', and part of the agreement was that they can fleece you for cash at will.

It sucks, but you agreed to let them do it.

[Specialone]

Contract has a different meaning in my world i guess.

[Spank86]

It's rubbish when that happens. It properly sucks, but that is the point of the contract. The contract isn't for your benefit. It's almost entirely for theirs. Asking what the point is makes no sense really because 'contact' doesn't mean 'consistent payment' or 'set of variables that don't change'. It means an 'agreement', and part of the agreement was that they can fleece you for cash at will.

It sucks, but you agreed to let them do it.

Thats generally what happens when the other party defines he contract. If you don't like it then I suggest you offer something a mobile company needs.

A mobile users union might be possible.

Contract has a different meaning in my world i guess.

I suspect like most "customers" the meaning on question is quite fanciful.

You signed it, perhaps you should have read it.

[tigersaw]

Another trick from O2 was that when VAT went from 17.5% to 20% they increased existing contracts accordingly - but new contracts were offered at the previous competitive price points

[Specialone]

I suspect like most "customers" the meaning on question is quite fanciful.

You signed it, perhaps you should have read it.

I do read most T&C's tbh, I also know they can increase prices, my op wasn't denying this fact, I was stating that 'contracts' aren't really contracts like we all think, they are a pretend contract on your side cos you are screwed and can't do anything, on their side they can pretty much do anything they like so it's not a contract at all apart from they agree to supply you with phone signal.

This wouldnt happen in other areas, I'm a self employed builder, if I quote a job and it's accepted, its now a contract, I don't half way through the work decide due to materials or whatever costing more than I planned, increase the price, I'd never get any work.

Same as if you purchased a tv, house or whatever on fixed term finance, it's a contract, would you be happy if they decided to put the price up by a few pounds a month? Course you wouldn't because you entered into a contract to pay x amount every month.

Anyway, bit defensive of the mobilel industry ain't you? Work for them by any chance?:rolleyes:

[Fallout]

This wouldnt happen in other areas, I'm a self employed builder, if I quote a job and it's accepted, its now a contract, I don't half way through the work decide due to materials or whatever costing more than I planned, increase the price, I'd never get any work.

Same as if you purchased a tv, house or whatever on fixed term finance, it's a contract, would you be happy if they decided to put the price up by a few pounds a month? Course you wouldn't because you entered into a contract to pay x amount every month.

That's true, you wouldn't be happy with those things, but it's not a fair comparison. That clause was in there. In your examples, you are the customer saying yes to a builder who quotes you £1000 but says he may up it by £100 if he feels like it, or the TV buyers who said yes to £100/month, but was told it might be upped to £110 if they felt like it. You said yes! :p

For the record though, I do sympathise mate. I don't read all the small print either, and I HATE mobile phone companies. I think they rank way down there with the other scummy companies out there, and the whole industry with their ridiculous 3 year contracts and charging stupid rates for poor service/no coverage pishes me right off! :smt070 :smt027

[Specialone]

With you on that one mate, mobile phone companies are only just above insurance companies on my hate list.

[Fallout]

I was trying to think of the other companies that won the most hated prize. Insurance is the winner! :)

[Mark_h]

So far as I know nobody is forcing you to have a phone. If you don't like the terms and conditions then don't sign. If a contract is legally unfair then it's unenforceable in court anyway. Always check your exit clauses and associated penalties. If you don't accept then don't sign.

Typically people sign up for a phone contract based on the flashenss of the phone and the day 1 bundle. Basically if you never check the implications on a two year contract you are a fool to yourself.

[Specialone]

I think people are failing to see what I'm getting at, so with the greatest respect please read my posts again, I'm under no illusions that they can do it, I know they can, as with most 'contracts', I'm questioning why bother with contracts as they are not set in stone like they should be for the duration of the term.

[Fallout]

On a side point, I have on two occasions used a method to get a cheaper deal. Sign up to your contract, wait for the phone to arrive and then take advantage of the 15 day get out clause. Phone them up and tell them you don't want it any more. It's such a waste of cash for them you normally get half price contract rates or some other discount. They're fleecing the bajesus out of you, and they know it, and they can afford to give you the whole lot at half price if they think they're going to get an opened phone returned to them and lose a contract.

[Specialone]

On a side point, I have on two occasions used a method to get a cheaper deal. Sign up to your contract, wait for the phone to arrive and then take advantage of the 15 day get out clause. Phone them up and tell them you don't want it any more. It's such a waste of cash for them you normally get half price contract rates or some other discount. They're fleecing the bajesus out of you, and they know it, and they can afford to give you the whole lot at half price if they think they're going to get an opened phone returned to them and lose a contract.

Nice plan and I'm sure it would work with most providers, but O2? I doubt it, they are so arrogant.

[Spank86]

Anyway, bit defensive of the mobilel industry ain't you? Work for them by any chance?:rolleyes:

Nope, nothing to do with them.

I just get bored of people complaining about stuff they've agreed to whatever industry, everyone signs these things and then whinges when the companies apply the terms.

The contracts don't give them the ability to do anything they want, the amount they can raise prices by is in there and it's usually only a few percent.

The contract IS set in stone, the contract just isn't what you think it is. it's not a price, the price is part of it and as per the contract the price may be varied once by up to a certain percentage.

And no I wouldn't be happy, but then you didn't do that, you purchased a flexible mortgage not a fixed rate one and so prices have gone up, at least unlike flexible mortgage rates there's a cap on how much they can go up.

As for your building contracts you could put those clauses in if you wanted... Not saying you'd get much work out of it though.

[Mark_h]

I think people are failing to see what I'm getting at, so with the greatest respect please read my posts again, I'm under no illusions that they can do it, I know they can, as with most 'contracts', I'm questioning why bother with contracts as they are not set in stone like they should be for the duration of the term.

The contract "sets in stone" the terms and conditions explicitly declared within the contract. If the contract stated that the price was fixed then you have legal grounds for complaint. However chances are the contract obliges you to pay on time and obliges them to provide a service in accordance with their service level agreements with penalties on both sides if the terms are contravened. The contract will almost certainly make provision for the supplier to adjust pricing and also make provision for you to exit the contract if those adjustments are outside of acceptable bounds. Read your contract again and see what those bounds are. If the rise is outside of those bounds then they are in material breach and you can end your contract with them on that basis.

So with the greatest of respect, I have read and understood your post. Basically you are upset that your monthly fee for service has increased during the term of your contract and as such you feel that renders the entire contract process worthless. In fact the issue is that the contract that you willingly signed enables the supplier to vary their charges they have done this and you are miffed. This does not negate the protective nature of the contract. If the supplier are in breach of any of their terms and conditions around the service provided, the method by which they announced the increase or the size of the increase itself then use the contract to challenge them. Else see this as a lesson in taking the time to read a contract while being excited by a new toy. If it does not include provision for term-fixed pricing then look for the adjustment clauses. If you are not satisfied with the protection it offers you then do not sign it.

I suspect during your contract term you have received improved access speeds, potentially improved coverage. You will have received massive discounts on international roaming brought around by EU legislation and depending on your contract possible reductions in costs for data access both domestically and while roaming.

And no... I don't work for a mobile company either I just take the time to read stuff before I sign it where money's involved.

[Specialone]

Mark, I agree with everything you've posted apart from the increased reception or coverage, if anything it's worse in the last 3 years.

I do read contracts before I sign them, do I fully understand every detail? No I don't, they deliberately word it in a way to confuse or mislead (IMO) the average consumer.

I know my contract allows increases and it's not that im disputing, its just the over the barrel nature generally.
I doubt there are different ones in the industry tbh, or I'd be looking at changing.

[Paul the 6th]

I was trying to think of the other companies that won the most hated prize. Insurance is the winner! :)

estate agents and car sales.

[flymo]

......I'm questioning why bother with contracts as they are not set in stone like they should be for the duration of the term.

The contract is set in stone for the duration, you just assumed that the monthly rate would be too. So in this case it seems that a contract may be useful in that you absorb the cost, or most of the cost, of the phone itself across a long term and pay a certain amount towards the service provider to maintain the network and provide you a particular service. The contract very likely states that under certain conditions those costs may increase, which will be passed on to you.

[chris8886]

Nice plan and I'm sure it would work with most providers, but O2? I doubt it, they are so arrogant.

i don't disagree with you and i would like to leave O2, but the problem is, i think they have the best phone coverage of any of the mobile phone companies, except where i live!

[Specialone]

i don't disagree with you and i would like to leave O2, but the problem is, i think they have the best phone coverage of any of the mobile phone companies, except where i live!

Yep I agree there too, that's why I stayed with them for so long, I could match my current deal and probably get it £10 cheaper a month from another provider, but it's not the cost that stops me.

[tigersaw]

Yep I agree there too, that's why I stayed with them for so long, I could match my current deal and probably get it £10 cheaper a month from another provider, but it's not the cost that stops me.

As I mentioned earlier, I've moved from O2 to Tesco, which is still O2 but cheaper. Had a look at their deals?

[Specialone]

As I mentioned earlier, I've moved from O2 to Tesco, which is still O2 but cheaper. Had a look at their deals?

I havent tbh, but im tied into this one until August 2014 anyway, bloody contracts lol

[widepants]

I was trying to think of the other companies that won the most hated prize. Insurance is the winner! :)
solicitors robbing barstewards.
Mine charged me a fee for the time involved while I had to count out my cash.....to pay their bloody bill

[daveyrach]

I complained to Vodafone when the same thing happened to me. They doubled my allowances, my contract only went up by 70p a month but I now get twice as many minutes, texts and data.

Sent from my Samsung Galaxy S2 using Tapatalk 2

[muzikill]

Im with tesco which is o2 and i dont think i would go anywhere else now. I called o2 up to get a better deal and theyre negotiation skills were embarassingly tight. Completely detrimental to getting new business.