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Company/Employment Law Query - Advice Please!


greido

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Hi,

 

'My mate' has a potential issue in that he has a Limited Company and carries out IT Contracts, on Thursday last week he signed a contract to provide a service from 26th October, the contract has not been counter signed by the agency as Credit and Criminal History checks are ongoing.

The problem he is facing that he has potentially had a better offer elsewhere, so is the contract signed legally binding since it's not been counter signed and not started yet?

I appreciate all contracts are different but if you know how he might stand here I'm sure he'd appreciate it. Incidentally, there appears to be no notice period clause on the side of the contractor.

 

Thanks,

 

G

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You'd need to get a proper lawyer to read the contract I would expect. As soon as its signed on your behalf then you are bound to it AFAIK, but I guess its not legally binding until both parties have signed it. This is why I always get the client to sign the contract and send the copies to me, rather than the other way around. There must be some "Termination" terms in the contract, and it would be those I would be looking at very carefully. In the case of my last contract, both parties had the right to terminate the contract without notice before the contract start date.

 

Im sure someone more knoledgable will be along shortly, but if not, try one of the many contractors forums, they will answer your questions quickly, but a lot of it will be down to the terms of contract :)

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As the client is doing credit and criminal record checks this would suggest that if these came back unfavourably then they would have the right to terminate the contract before the start date, therefore you may have similar rights to withdraw before the start date.......as said previously you will have to go through the termination T&C's with a fine tooth combe, i'd suggest the sooner the better too.

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