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What should I do? Breach of contract as concessionare

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cs_starter


Arresto Menor
Hi,

I signed a contract with one of company brand here in PH to be their consignee, in which I will consign items in their store with the ff: conditions
on termination
1. 60 days notice before pull out
1. 2 months equivalent of min.  guaranteed rent (P36,000)

I have been with them for just a month but can clearly see that the sale just won't cut it. Imagine for the whole duration of 1 month, I only got P200(out of P5500 gross less all their deductions such as CUSA, rack rental, 30% commission) sale, that is against the operational cost of P21,500 guaranteed rent, P6500 promodizer salary and the overhead cost of the items that was sold. So in 1 month alone, I got negative P27,800, not including the cost of items that was sold (let's say around P2,500)

Clearly there's no way this is a profitable venture. I know it was stupid to jump on it without knowing much (pls. give me benefit of doubt, that I did some study and even tried selling in other stalls, malls etc before concluding), but mostly, I just relied on what the marketer said that their sales exceeded even P60k a month (60k is their projected min. sale per month). I was too gullible. To make story short, we decided to just not continue with it. I talked to them and begged that if I can pull out already and just pay the 36,000 termination fee with my remaining displayed items instead of cash coz I don't have any money left (why? is another sad story) to pay it, but they don't want the items, they want cash. I suggested if I can settle it via check installment but they too don't want it and they want me to stay for 2 months more, as per the contract (60 days notice).

I mean, I am too broke enough to even pay the salary of my promodizer for another 2 months, adding the the guaranteed rental on top plus 36k termination fee. That's whooping P110,000 that I need to come up with. it is like saying no you can't leave yet, have ur self more bankrupt for another two months, then u can leave and pay us 36k more. They can shoot me on the spot and I still don't have the money.

I don't want to run or anything (they did not ask for any deposit, so I can just leave anytime, just leave the items and never contact again) but that's not how I want it to end. I am  professional and clean businessman, but the situation is leaving me with not much of a choice but to run. Before I do that, an advise? Any legal standpoint? I mean, I don't want to ruin my reputation because of this bad decision I made. What are the consequences I might face if I do this? Will I be charged, to what ground? What can be the worst case scenario here? Anything I can do to counter the contract? Pls. note I don't have any unpaid bills to them except for the 36k termination (which I was willing to pay but not in cash and in lump sum) and their demand for me to stay another 2 months. I can Pm the scanned contract for you to see. I just don't want to post it here in public. pls. help, I am very confused.  confused Thanks.

edit: Btw, My business is not yet BIR registered, only DTI as I am still in the process of registering it. I only got as far as getting bgy. clearance. The consignor allowed it and they said kahit to follow na lang. Not sure, if this is an important detail.

also, the store manager told us that if we don't plan to sell anymore and just leave, not have our own promodizer attend the booth na parang walang nangyari, we will be charged P500/day that it is not attended. Kumbaga, babaunin ka sa utang sa araw araw na balak naming di na mag tinda na hindi kami "cleared". Now, I don't see this in the contract I have signed. Shall I be worried on this too?



Last edited by cs_starter on Sun Jul 05, 2015 2:41 pm; edited 1 time in total (Reason for editing : added info)

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