Originally posted by Boo
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Restrictive covenant
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Coffee's for closers -
Originally posted by SueEllen View PostJudges rule on the law and what is written in the contract. This means they will look at the technicalities and rule on that not what you wish it to say.*
In this case the supplier is different and so the old supplier is not liable for penalties. The representative is not liable for any penalties in that clause.
However there may be other clauses in the contract where the representative is liable, plus the contract may not define the word "supplier" strictly.Originally posted by PSK View PostI think the courts will sometimes look at the substance rather than just the technicalities.
For example, they may lift the 'corporate veil' to see who is behind a company, where there is a 'fraud or sham' and someone is trying to do something they would be prevented from doing. There's a whole body of caselaw some of which may be relevant to these circumstances. I'm not saying it is the whole picture as usually the legals depend on the detail but in lay person's terms -
Gilford Motor Co Ltd v Horne (1933)
H was a car salesman, and left G. His contract stated that he wasn’t
allowed to sell to G’s customers for a period after leaving. H set up a
company which then approached his former customers; H argued that
firstly his company was approaching the customers, not him; and
secondly, if thee was wrongdoing, his company was liable and not him.
The courts held that the company was sham, and granted an injunction
against his company as well as him.
Originally posted by SueEllen View PostHowever there may be other clauses in the contract where the representative is liable, plus the contract may not define the word "supplier" strictly.
Originally posted by SueEllen View PostI do however have a problem with agencies trying to bulltulip me over legal aspects of my contracts including putting clauses that are unenforceable if they were tested in a court of law.Coffee's for closersComment
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Originally posted by Spacecadet View PostIf you get your contracts through agents (and half of mine have been) then you can't really accuse them of being useless.
BooComment
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