How to terminate a contract before it is even started

[Lewis]

What is the standard cooling off period for signing a contract?

A lot of my contracts have wording to the effect that either party can terminate without notice before start date. Check the wording of yours.

[Denny]

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Denny - you're wrong, if he's signed and doesn't honour it, he can be sued. Far better to be totally professional, and either negotiate a graceful exit, or use the notice period.

Sued for what? What material losses has the EB incurred up to that point when no work had yet been done? This would need to be clearly demonstrated - that there was a material loss from the EB and that the material loss had a direct association with the contractor pulling out.

The EB would need to demonstrate that their efforts in locating the work resulted in a direct loss associated with the contractor pulling out. Because EBs are entitled to put forward other candidates for the same role, but just chose not to, or the client chose a particular contractor over another competitor to undertake the work, the link simply isn't there conclusively. The client is as much at fault for making a poor judgement. If the work had been gained directly, and a contractor had pulled out, then the case would be more convincing. But if an EB is involved, the EB is merely 'supplying' the service for which he is never paid until the work is well underway and timesheets signed. So there is no case.

Besides, it is likely that a judge would never honour such a non-reciprocal agreement in the first place and the case would never come to court.

EBs need to take these risks, because clients and the EBs can also pull the rug at the eleventh hour.

Scarmongering in the terms and conditions is one thing, trying to make a convincing enough case is quite another.

[tim123]

Besides, it is likely that a judge would never honour such a non-reciprocal agreement in the first place and the case would never come to court.

In a B2B contract reciprocity is not expected. If you signed it, then it will be expected to be honoured.

And the case would have to come to court for the judge to even consider rejecting it.

tim

[Denny]

In a B2B contract reciprocity is not expected. If you signed it, then it will be expected to be honoured.

And the case would have to come to court for the judge to even consider rejecting it.

tim

No solicitor would lead his client to court unless they had a fair chance of winning the case. What would be the point? Most wouldn't touch the case in the first place to save wasting their client's time. Even if there is a case, in civil law the process is set up deliberately to promote out of court settlements based on what an estimated sum that 'could' have been won if the case did come to court. In this case, I expect it would be nil.

[ratewhore]

Best way round this if you can is, as someone has already pointed out, to invoke the substitution clause.

[Denny]

Best way round this if you can is, as someone has already pointed out, to invoke the substitution clause.

When are you going to invoke a sub for yourself on this forum?

[tim123]

No solicitor would lead his client to court unless they had a fair chance of winning the case. .

I agree, but you implied (very strongly) that the reason the case wouldn't come to court is because the agent would realise that judge wouldn't uphold the unequal clause that was the cause of the problem.

This is entirely false. If it were not to get to court on solicitors advice, the reason is that the contractor would be told that he had no defence to the clause and should pay up!

Having said that, it will more likely not get to court because any award would be against the contractor's LTD and the agency will realise that this party is not worth sueing.

tim

[Archangel]

In the first month there is no notice period usually, so the material losses would be zero.

You do spout some nonsense Denny, in 20 years of contracting I have NEVER had a no notice period on the contractor side. (often on the Client/Agency side)

[Lewis]

You do spout some nonsense Denny, in 20 years of contracting I have NEVER had a no notice period on the contractor side. (often on the Client/Agency side)

I have quite often actually. With big agencies and investment banks. I say no notice, it is usually 1 day.

[Archangel]

I have quite often actually. With big agencies and investment banks. I say no notice, it is usually 1 day.

So you can give the agency/bank 1 days notice then leave???