slightly different handcuff clause question

[Wanderer]

The agency can potentially claim a fee for 'introduction without supply', this will likely to be a large fee and will mean that the client will be put off hiring you.

How much would this fee typically be? Surely the client could pay the agency off and engage the contractor direct. It seems bizarre that the agency would burn their bridges and walk away from this with nothing.... Surely they could come to some arrangement and something is better than nothing?

[Ninja1980]

Could you let me know who the agent is? I'll avoid them in the future.

[northernladuk]

The agency cannot restrict you.

The agency can potentially claim a fee for 'introduction without supply', this will likely to be a large fee and will mean that the client will be put off hiring you.

I can't believe that would stand up in court. Don't restrictive covenants have to be reasonable to be valid? I see nothing reasonable in this situation. I mean, the agency have written themselves out of the equation by not being able to supply to the client through their refusal to sign a clause in the upper contract. They therefore and not doing business with the client or incurring any loss. It is their fault.

I cannot see a court ruling that is reasonable.

[Andy Hallett]

I can't believe that would stand up in court. Don't restrictive covenants have to be reasonable to be valid? I see nothing reasonable in this situation. I mean, the agency have written themselves out of the equation by not being able to supply to the client through their refusal to sign a clause in the upper contract. They therefore and not doing business with the client or incurring any loss. It is their fault.

I cannot see a court ruling that is reasonable.

Next time you guys have a get together I will come and do a talk on the subject. Happy to go through actual case studies and precedents we have collected over the years.

[northernladuk]

Next time you guys have a get together I will come and do a talk on the subject. Happy to go through actual case studies and precedents we have collected over the years.

I would actually be quite interested to hear about them. I have a funny feeling if this one stands up I will just end up coming out very frustrated with our legal system. How someone can put a restraint on a situation they caused and have nothing to gain from is just ludicrous.

[Andy Hallett]

If the agency have a good process in place, it will be enforceable.

[SueEllen]

The agency would have likely sent pre-incorporation terms which become binding upon the client requesting information.

HTH

Not all agencies do.

Some clients are also very clever and refuse to accept any contract terms until a worker is supplied.

And yes I have had interesting discussions with agents.

[Andy Hallett]

Not all agencies do.

Some clients are also very clever and refuse to accept any contract terms until a worker is supplied.

And yes I have had interesting discussions with agents.

True, but this is most likely explanation given what the OP wrote.

Yes, some clients understand this and use mechanisms to stop themselves being bound by introduction terms.

If only I could say the same

[LisaContractorUmbrella]

I can't believe that would stand up in court. Don't restrictive covenants have to be reasonable to be valid? I see nothing reasonable in this situation. I mean, the agency have written themselves out of the equation by not being able to supply to the client through their refusal to sign a clause in the upper contract. They therefore and not doing business with the client or incurring any loss. It is their fault.

I cannot see a court ruling that is reasonable.

IANAL but I think it would depend on the terms that were agreed with the agency initially when the company contacted them about supplying contractors. If both parties signed a document which stated that a 'finders fee' would be payable regardless of whether or not the agency were contractually involved in the eventual supply then it would not necessarily be considered unreasonable by a court.

[Wanderer]

Next time you guys have a get together I will come and do a talk on the subject. Happy to go through actual case studies and precedents we have collected over the years.

Would you be willing to tell us about the cases that you lost?