When does a contract end?

[mulberryblue]

If company A has a contract to supply a service to company B, and company A notifies everyone they have ceased trading. When does the contract with company B end, and should Company B be notified the contract has ended due to the company A having declared they have ceased trading?

Company A are in adminstration or liquidation.

[SimonMac]

I assume a contact ends when one party breaches it, either by not paying (Company B) or not providing a service (Comapny A)

[Craig@Clarity]

I've seen and reviewed quite a few contract and in a lot of them there should be a clause which says something along the lines that if you are insolvent, in admin etc, you should notify them and the contract can be terminated with immediate effect. Does this apply to you?

[northernladuk]

It is also worth considering that contracts may have a clause stating that the agent will not pay the contractor if the client does not pay. Regardless of the technicallities of the contract if client doesn't pay agency, contractor gets no pay.

Your contract may not be terminated but you still won't get any money.

[normalbloke]

It is also worth considering that contracts may have a clause stating that the agent will not pay the contractor if the client does not pay. Regardless of the technicallities of the contract if client doesn't pay agency, contractor gets no pay.

Your contract may not be terminated but you still won't get any money.

I'm not sure that's true.... Your contract is wth the agency, not the end client and if you have an approved timesheet from the client saying you have completed the work then the agency pays you. Thats Ts and Cs that you should ensure in your contract with the agency. If the agency doesn't get paid then thats between them and the client, not you.

I think a clause concerning payment dependency would be open to challenge, especially if the client confirms you have done the work.

[TheFaQQer]

It is also worth considering that contracts may have a clause stating that the agent will not pay the contractor if the client does not pay. Regardless of the technicallities of the contract if client doesn't pay agency, contractor gets no pay.

Your contract may not be terminated but you still won't get any money.

Not true - if you are opted in, then the agency must pay you for the work that you do, regardless of whether they get the money or not.

[northernladuk]

Not true - if you are opted in, then the agency must pay you for the work that you do, regardless of whether they get the money or not.

Agreed but we have seen more than enough posts on here where that doesn't translate in to fact. To be fair we never saw the outcome of most of these so don't know if the OP's ever got their money which would have been very interesting.

Question also is what situation is the OP in regarding opt in/out

[mulberryblue]

I assume a contact ends when one party breaches it, either by not paying (Company B) or not providing a service (Comapny A)

The service was still supplied to company B as the contractor providing the service (which allowed company A to fulfill the contract with company B) was not aware until later, that company A had ceased trading earlier in the month. Company A say they were no longer interested in the contract due to having ceased trading (not in liquidation or administration just for business reasons). Should company B still pay company A for the service provided by the contractor after they had ceased trading although Company A did not invoice for the money and couldn't reconcile the payment as they had no information as to what service the contractor had provided?

[Scrag Meister]

Agency gone belly up?

Very confusing thread.

If this is the case, I would be very tempted to speak to the client to draw up a new contract if they will.

Cos once the money goes from the client ot the agent it'll disappear in the admin/liquidation ether, and you'll probably never see it.

[SimonMac]

The service was still supplied to company B as the contractor providing the service (which allowed company A to fulfill the contract with company B) was not aware until later, that company A had ceased trading earlier in the month. Company A say they were no longer interested in the contract due to having ceased trading (not in liquidation or administration just for business reasons). Should company B still pay company A for the service provided by the contractor after they had ceased trading although Company A did not invoice for the money and couldn't reconcile the payment as they had no information as to what service the contractor had provided?

Compnay B SHOULD NOT PAY anything to Company A, if they do this will just go to the liquidators and the contractor would only be entitiled to a share as per all other creditors that Company A owe money too (after HMRC have had their money first IIRC)