Validity of Contract

[jungleboogy]

The agency I deal with went into administration and were acquired by another company. However, said company did not inform the client who in turn confirmed they have no contract with the acquiring company. Does that make my contract void ? If I remain onsite while this dispute is ongoing between the respective parties, is there a risk my public and employer indemnity insurance could be invalidated, not to mention the obvious question mark over payment.

[Jessica@WhiteFieldTax]

I doubt your insurances will be effected.

A lot of the issues on validity of contract will depend on what your own contract with the agent says.

However there is a legal principle called "quantum meruit" which implies you are entitled to payment for work done, especially where it's in accordance with the wishes of the parties - has any one told you to stop work? The would probably give you protection if you weren't paid and ended up in court.

If you are unsure, then talk to a commerical lawyer.

[Safe Collections]

However there is a legal principle called "quantum meruit" which implies you are entitled to payment for work done

That is true, however we would not recommend you rely on this principle to get paid!

You need to find out exactly what is occurring with the original agent as Administration is not the same as Insolvency.

It's possible the original agent co is continuing to trade, but now as a wholly owned subsidiary of the new co. But it is also possible that the new owners have only purchased the assets of the original agent and not the liabilities and those liabilities will likely include your money!

You need to speak to the administrators of the original agent co ASAP! and get a firm undertaking from them as to what will happen with any currently outstanding invoices, as well as any further invoices. If they wont or can't give you this, you need to carefully consider your financial position.

Remember you can not enforce any legal action against a company in administration, so even if you get a CCJ you can't do anything with it.

[Jessica@WhiteFieldTax]

That is true, however we would not recommend you rely on this principle to get paid!

No, neither would I as first choice. OP needs a lawyer

[jungleboogy]

Thanks for the feedback and advice, will let you know how things pan out in due course