Breach of Contract

**NotAllThere** · 30 May 2008, 09:41

So the client exercise their contractual right to get rid of you, the supplier, supplied by the agency, and the supplier is then in breach of contract to the agency?

I don't think so. Which particular clause of the contract between yourco and the agency has been broken?

Sounds like typical incompetently drafted fud.

**DodgyAgent** · 30 May 2008, 09:47

Originally posted by Drifter View Post

hi, i have been issued a contract and within the contract term of agreement section it states : for any reason the Consultancy proves unsatisfactory to the client i can be terminated without notice. then it also says that if this occurs then the recruitment agency can seek damages from myself and hold me liable for breach of contract and loss of their earnings...

has anyone else ever had anything similar in their contracts. is this justifiable?

any advice greatly appreciated

looks good,

they can get rid of you for "any reason" AND charge you for any loss of margin.

Scenario is this:

Contractor offered 2 year contract, sacked after 1 week. Agency invokes entitlement to loss of margin, places a replacement who subsequently gets sacked after a week and so on.

Nice little earner.

Run it past the lawyers.

**Drifter** · 30 May 2008, 10:03

hi

yes that's what i thought. they have now agreed to have a 30 day notice period on both sides. so would the maximum they could sue for in any case be 30 days? but they still have the following in the contract:

8.3 this Agreement, by the Recruitment Agency who may without notice and without liability instruct the Consultancy to cease work at any time , where :

8.3.3 for any reason the Consultancy proves unsatisfactory to the client;

8.5 where the Recruitment Agency has the right under 8.3 to instruct the Consultancy to cease work on the Assignment at any time, the Recruitment Agency reserves the right to seek damages from the Consultancy for breach of contract and loss pf profit

**NotAllThere** · 30 May 2008, 10:09

"Reserve the right" does not mean that they'll exercise the right. Especially since the clause makes little sense.

If the client get rid of yourco for any reason, then the agency have the right to get rid of yourco. If that happens, where's the breach? What's to sue over?

If you're really worried, as DA says, run it past a lawyer. Me - I wouldn't lose sleep over it.

**ace00** · 30 May 2008, 12:16

Originally posted by NotAllThere View Post

....Me - I wouldn't lose sleep over it.

I would.
I would demand they remove section 8.5, I wouldn't even bother a lawyer with it.

It is quite normal to have an option to terminate without notice for any reason, don't like it, but OK. But to then say they can sue you for the outstanding on the contract......

**BolshieBastard** · 30 May 2008, 19:12

Originally posted by ace00 View Post

I would.
I would demand they remove section 8.5, I wouldn't even bother a lawyer with it.

It is quite normal to have an option to terminate without notice for any reason, don't like it, but OK. But to then say they can sue you for the outstanding on the contract......

Agreed. In fact, I'd walk away from any contract that had T&C's like that in it. Bound to be a load of trouble imo.

**Paddy** · 31 May 2008, 11:01

Originally posted by Drifter View Post

hi, i have been issued a contract and within the contract term of agreement section it states : for any reason the Consultancy proves unsatisfactory to the client i can be terminated without notice. then it also says that if this occurs then the recruitment agency can seek damages from myself and hold me liable for breach of contract and loss of their earnings...

has anyone else ever had anything similar in their contracts. is this justifiable?

any advice greatly appreciated

Is it in your contact or in their standard terms and conditions?

Breach of Contract