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Going direct after a four-party contract breakdown

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    #11
    Originally posted by WordIsBond View Post
    Not very likely, if his contract with the agency doesn't mention end users. There's also the question of how the agency would even know.

    But ultimately, the agency would have to prove loss, and if the consultant has cancelled they'd have a hard time proving that.

    If OP is getting a rate uplift out of this by going direct, maybe he sets aside 10-15% of it for a while in case there's a later claim from the agency. But for that to happen, they have to find out, they have to prove that they've incurred a loss, and OP could even then go to the client and say, "You wanted this, you said you'd handle claims." Chances are they'd see off the agency just like they'll see off the consultancy.
    We don't know any of the points above so just best get the end client to say they'll deal with any fall out and carry on without worrying.
    'CUK forum personality of 2011 - Winner - Yes really!!!!

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      #12
      Originally posted by northernladuk View Post
      If the handcuff has been clearly breached I'd be preparing for more than threats.
      If it's one contractor then they'll hurl a bit of abuse and then move on. They do it all the time.

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        #13
        Originally posted by northernladuk View Post
        We don't know any of the points above so just best get the end client to say they'll deal with any fall out and carry on without worrying.
        Thanks.

        Letting the End User deal with it appears to be the best option.

        It seems that the Contracts (Rights of Third Parties) Act 1999 gives the Consultancy the same rights as the Agency - so the Agency will have to enforce the restriction on behalf of the Consultancy.

        The Agency is sympathetic but have said they are bound by their contract with the Consultancy and advised that I try to persuade the Consultancy to waive the restrictions. I am not sure that will work.

        So, I will try to get the End User to resolve any issues they may have with the Consultancy - pay up front if they need to and move on from there. Or I will have to move on.

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          #14
          Originally posted by hardcode View Post
          Thanks.

          Letting the End User deal with it appears to be the best option.

          It seems that the Contracts (Rights of Third Parties) Act 1999 gives the Consultancy the same rights as the Agency - so the Agency will have to enforce the restriction on behalf of the Consultancy.

          The Agency is sympathetic but have said they are bound by their contract with the Consultancy and advised that I try to persuade the Consultancy to waive the restrictions. I am not sure that will work.

          So, I will try to get the End User to resolve any issues they may have with the Consultancy - pay up front if they need to and move on from there. Or I will have to move on.

          OK, if you're going down that route, make sure you have it in writing from the end user BEFORE signing any contract with them or doing any work directly.
          …Maybe we ain’t that young anymore

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