Contract protection

[expat]

Inspired by another thread, but separate question.

Is it feasible to put a clause in your contract with an agency, to the effect that in the event of late payment, the contract is no longer in force?

I am thinking of the case where the agency is going bust, but not only are you not getting your money, but you are trapped because your contract still applies and if you walk away from it, the liquidator could come after you for lost income.

[TheFaQQer]

Yes. Many have a clause that says that if they go bust, then the contract is terminated, so it's really just an extension of that.

[tim123]

Inspired by another thread, but separate question.

Is it feasible to put a clause in your contract with an agency, to the effect that in the event of late payment, the contract is no longer in force?

It is, but they won't agree to it. It's just too big a penalty for the crime.

I am thinking of the case where the agency is going bust, but not only are you not getting your money, but you are trapped because your contract still applies and if you walk away from it, the liquidator could come after you for lost income.

This is a differerent issue and ought to be possible.

But what I don't understand is how the liquidator could come after you for anything. The law recognises that suppliers wont continue to supply a bankrupt company and no-one will force you to do so.

tim

[expat]

<add clause to contract...>
It is, but they won't agree to it. It's just too big a penalty for the crime.

<stop working after agency in liquidation>

This is a differerent issue and ought to be possible.

But what I don't understand is how the liquidator could come after you for anything. The law recognises that suppliers wont continue to supply a bankrupt company and no-one will force you to do so.

tim

1. Thanks.
2. OK, so if your agency goes bust, you probably can't go direct to the client (and daren't go through the existing contract lest you get nothing); but you may walk away and get on with working elsewhere?
3. Ah, but what if the agency is not bust yet, but is not paying you, and you stronlgy suspect it is sinking? IF you walk then, they may come after you. If they then go bust, the liquidatro may keep coming after you.

I'd like to protect myself by having the right to terminate as soon as they are significantly late in paying.
I can only ask for the clause, I suppose. Don't people think it would be a good idea?

[tim123]

1. Thanks.
2. OK, so if your agency goes bust, you probably can't go direct to the client (and daren't go through the existing contract lest you get nothing); but you may walk away and get on with working elsewhere?
3. Ah, but what if the agency is not bust yet, but is not paying you, and you stronlgy suspect it is sinking? IF you walk then, they may come after you. If they then go bust, the liquidatro may keep coming after you.

Refusing to make further supplies, after not being paid for previous supplies, is recognised as a legitimate response. But to make it a legitimate response you have to show a wilingness to continue to supply, once the (lack of)payment issue is resolved.

tim

[expat]

Refusing to make further supplies, after not being paid for previous supplies, is recognised as a legitimate response. But to make it a legitimate response you have to show a wilingness to continue to supply, once the (lack of)payment issue is resolved.

tim

Great. So you can sit at home, but you can't take another contract.

I know it makes sense as you express it, but it don't get the mortgage paid.

[Moscow Mule]

In the case you describe, I think you can write a letter telling them you consider them to be in material breach of the contract if they don't pay you in x days, meanwhile withdraw supply of services until paid.

You should only be benchwarming for x days...