Reply to: Liable for cost of contract

[Moscow Mule]

Really not sure how the end client (or indeed the agent) would be able to sue you for non-disclosure.

The only remedy available to them (should they find out) is that of a breach of contract - assuming there is a clause in the contract that covers this sort of thing, and that it is not unfair (i.e. it's a valid clause).

When a breach of contract has occurred, the innocent party will need to sue for damages.

The object of damages is usually to put the injured party into the same financial position he would have been in had the contract been properly performed.

I take this to mean that they would have to prove that they suffered financial loss as a result of your non-disclosure, assuming you're providing IT services and those services are not invalidated by your non-disclosure I expect this to be very hard to prove.

If anybody can think of another way the injured/innocent party could sue for the value of an entire contract, I would be please to hear it...

AANAL, so don't take this as legal advice.

[Wanderer]

A fellow contractor has told me that if you don't declare a criminal conviction you may be liable for the cost of the contract and you may have to pay back any money you were paid in that term.

How long ago was the conviction?
Is it a "spent" conviction?
Did they ask you to do a criminal record bureau check?

If it's a spent conviction under the Rehabilitation of Offenders Act and they don't ask you to do an enhanced disclosure then my understanding is that you are not obliged to tell them about it.

As for paying back the money owed, as DeludedAussie says, it would be your limited company which has to pay back the money, not you personally. As it happens, LTD companies like ours often have no assets so there is no point taking a civil action against them....

[DeludedAussie]

A fellow contractor has told me that if you don't declare a criminal conviction you may be liable for the cost of the contract and you may have to pay back any money you were paid in that term. This seems to be a very grey area. I can see how you could be in trouble for misrepresentation of service but to be liable for any costs if find this hard to understand as you have delivered a service. Do any of you have advice on this matter?

My advice is simple - Always keep the company running on empty.

If they do try anything funny like making you pay the cost of the contract they will have to go via a court which will take them at least one year. They can obtain judgement against the company and wind it up but remember it is empty so no harm done

And its not fraud at all - Its quite possible you forgot to disclose and for fraud they need to provie it was intentional

[SueEllen]

Sue, no one has asked me at interview stage and there is nothing in the contract to disclose .... so its not fraud but if anyone does ask me and I lied then yes its very serious.

thanks

Then why are you making a fuss about it?

You weren't asked so you couldn't tell them and they don't ask you to disclose it in the contract so keep your mouth shut.

Different contractors working for the same client going through the same agency can have different contracts.

[northernladuk]

Sue, no one has asked me at interview stage and there is nothing in the contract to disclose .... so its not fraud but if anyone does ask me and I lied then yes its very serious.

thanks

Which will often lead to another lie to cover the first one and so on....

[mconran]

It seems you are only worried about paying the money back.

What you have done is fraud and if ClientCo is bl**dy minded then you will find yourself with something more serious than your public order offence.

If I were you I would try and get out of the contract quietly asap.

Sue, no one has asked me at interview stage and there is nothing in the contract to disclose .... so its not fraud but if anyone does ask me and I lied then yes its very serious.

thanks

[SueEllen]

I cant seem to find anything solid on this...

some say if they ask and you say "no" it is misreprentation of service and they are entitled back
what they have paid you over the contract term...

other forms dont mention anything about the company going after existing paid invoices

It seems you are only worried about paying the money back.

What you have done is fraud and if ClientCo is bl**dy minded then you will find yourself with something more serious than your public order offence.

If I were you I would try and get out of the contract quietly asap.

[SimonMac]

As said before, being a criminal is not against the law, not disclosing something when asked is grounds for them to cancel a contract.

[mconran]

I cant seem to find anything solid on this...

some say if they ask and you say "no" it is misreprentation of service and they are entitled back
what they have paid you over the contract term...

other forms dont mention anything about the company going after existing paid invoices

[EternalOptimist]

Its just a little public disorder...

so if I am asked and I don't disclose am I liable for the cost of the contact? and what exactly does that mean?

oh. tricky one


It sounds like this other contractor knows you have a record

[SueEllen]

Its just a little public disorder...

so if I am asked and I don't disclose am I liable for the cost of the contact? and what exactly does that mean?

What does your contract say about non-disclosure?

I'm surprised if there isn't a clause where they can walk you off-site.

The refusal to pay may be a different clause or not there at all, as if an agent is involved they often talk hot air.

[SueEllen]

A fellow contractor has told me that if you don't declare a criminal conviction you may be liable for the cost of the contract and you may have to pay back any money you were paid in that term. This seems to be a very grey area. I can see how you could be in trouble for misrepresentation of service but to be liable for any costs if find this hard to understand as you have delivered a service. Do any of you have advice on this matter?

The proper answer to this is depends on the industry sector and more importantly on what the contract says.

Sectors where you aren't suppose to have criminal convictions the client will check you don't have them.

If they didn't check, didn't ask you and didn't state something in the contract and it's later found you do have a criminal conviction then refused to pay then you could go after them for breach of contract.

[mconran]

What did you do ? come on, give us all the juicy details

and then I'll er, give you some really good advice

Its just a little public disorder...

so if I am asked and I don't disclose am I liable for the cost of the contact? and what exactly does that mean?

[northernladuk]

Not declaring it when asked is fraud. You want to be more worried about the law than the cost of the contract IMO.

If you commit fraud with the intent to deceive anyone then you are in the lap of the gods. I am sure they are quite within their rights to come after you personally for any costs they feel.

[EternalOptimist]

What did you do ? come on, give us all the juicy details

and then I'll er, give you some really good advice