Penalty Clause in Contract - What to do?

[Veetee]

I've recieved a very short term training contract (<GBP 2000) which has a penalty clause stating that if
''you do not fulfil your obligations by starting on the agreed date you will be liable for a penalty of the greater of £6000 or 3 months projected profit ''.

However, they have indemnified themselves for any liabilities whatsoever incase I incur any losses due to anyone's fault.

Is this legal and secondly, should it be acceptable though I don't want to loose the contract.

[northernladuk]

I've recieved a very short term training contract (<GBP 2000) which has a penalty clause stating that if
''you do not fulfil your obligations by starting on the agreed date you will be liable for a penalty of the greater of £6000 or 3 months projected profit ''.

However, they have indemnified themselves for any liabilities whatsoever incase I incur any losses due to anyone's fault.

Is this legal and secondly, should it be acceptable though I don't want to loose the contract.

[BlasterBates]

This sounds excellent for proof you're outside IR35, though it does sound like you're already pretty safe anyway.

[cojak]

I've recieved a very short term training contract (<GBP 2000) which has a penalty clause stating that if
''you do not fulfil your obligations by starting on the agreed date you will be liable for a penalty of the greater of £6000 or 3 months projected profit ''.

However, they have indemnified themselves for any liabilities whatsoever incase I incur any losses due to anyone's fault.

Is this legal and secondly, should it be acceptable though I don't want to loose the contract.

Yes it's legal. I can see why they've put this in - it's to stop you reneging on the contract at the last minute leaving them with 8 delegates staring at a wall and out of pocket to the tune of £6000. I'd get the contract looked at by B&C or Qdos but if that's the only penalty then I'd take it as it's a short contract (just make sure you're there the night before to make absolutely sure you turn up on time...)

[b0redom]

3 months of who's projected profits and who is projecting them?

I guess it's because they don't want a load of external customers signing up on your training course, booking the room and you not turning up to give the training.

[BolshieBastard]

LOL! Take a chill pill, bro!

[LisaContractorUmbrella]

LOL! Take a chill pill, bro!

He's going to need more than one if this keeps up BB

[psychocandy]

Yes it's legal. I can see why they've put this in - it's to stop you reneging on the contract at the last minute leaving them with 8 delegates staring at a wall and out of pocket to the tune of £6000. I'd get the contract looked at by B&C or Qdos but if that's the only penalty then I'd take it as it's a short contract (just make sure you're there the night before to make absolutely sure you turn up on time...)

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.

[northernladuk]

He's going to need more than one if this keeps up BB

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

[LisaContractorUmbrella]

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

oooooooohhhhhhh that has got to hurt