Penalty Clause in Contract - What to do?

[cojak]

Hmmm. Not sure how keen I'd be though. I can see why client is doing this as other people have said.

With the best will in the world there may be a small chance where you absolutely couldnt make it. (Serious illness, family illness, etc etc).

Last thing you want to worry about is being sued for 6K then.

But it's a predicted risk for training companies and I would seriously have RoS in place for this eventuality (as an ex-trainer I've been a potential substitute for a mate/fellow trainer).

[pmeswani]

Am sorted now.. Doc game me one of these...

Is that a Matrix Pill?

[pmeswani]

oooooooohhhhhhh that has got to hurt

Surely it depends on how he has to take it.

[AussieDigger]

isn't this why you have PII ????

Besides, wouldn't they have to prove they lost those sales before actually suing you for them ?

[northernladuk]

isn't this why you have PII ????

Besides, wouldn't they have to prove they lost those sales before actually suing you for them ?

Nope, it is a penalty clause you agree to, not a loss of sales. You are not sueing them, you are agreeing to pay a penalty. They are different things.

[northernladuk]

Surely it depends on how he has to take it.

Am still smiling.......

[psychocandy]

But it's a predicted risk for training companies and I would seriously have RoS in place for this eventuality (as an ex-trainer I've been a potential substitute for a mate/fellow trainer).

Yeh. I'd say a RoS and someone lined up would be the plan.

[MyUserName]

Am still smiling.......

Did you take it as well?!!!!!

[AussieDigger]

Nope, it is a penalty clause you agree to, not a loss of sales. You are not sueing them, you are agreeing to pay a penalty. They are different things.

Yes, but to apply that penalty, one has to agree you breached the contract and that it led to the losses covered by that clause....a bit of a tall reach I would have thought....

I for one never agree to penalty clauses because they are like damages - causation has to be proven in court, not just given away...

[northernladuk]

Yes, but to apply that penalty, one has to agree you breached the contract and that it led to the losses covered by that clause....a bit of a tall reach I would have thought....

I for one never agree to penalty clauses because they are like damages - causation has to be proven in court, not just given away...

I don't agree. This has nothing to do with court. It is an agreement between two parties. If you do it you get paid this, if you don't you pay me that. That's it, end of. The only way it would go to court is if someone doesn't honour their part of the agreement.

If both parties argree the terms it has nothing to do with causation and court.

Agreeing breach of contract would be easy enough surely? The OP doesn't turn up to give the course. Seems all very straightforward to me.