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Decling contract after signing the paper work

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    Decling contract after signing the paper work

    Guys

    Can someone please advise me! I have never been in such a situation.

    I have signed a contract which starts next week and submitted all the relevant documentation.
    However another contract which I was really interested in, was being progressed very slowly for the last one month and finally they are very close to make me an offer end of this week. The new contract is the kind of role that I am interested in and they are with a far better daily rate (25% more) than the previous offer as they are in investment banking.

    My questions are..
    1. If I get the formal offer, can I decline the previous offer? If yes, what's the best way so that agency/client can be communicated in a polite way! I know they would hate me for this!
    Any advice!
    2. Is there any legal implication if I decline to join the contract next week? I use limited company to do contracting. Is there any thing to be concerned about?

    Any help is really appreciated.

    Thanks in advance

    #2
    It's feasible to terminate a contract without honoring the contracts term. In your situation I would say at best the client / agent can probably try and force you to serve out the contracts notice period but ask yourself what will they gain from this. In my opinion they won't gain much and if you haven't even started yet will gain even less. They are likely to wear what ever it cost them to find and vet you and quietly move on.

    The other aspect is what will the rejection do to your relationship with the end client. If they aren't already a customer or there is unlikely to be future business with this particular client then I guess this becomes a moot point. However, if they are bringing you repeat business then you are risking potential future opportunities.

    Comment


      #3
      Originally posted by rambaugh View Post
      It's feasible to terminate a contract without honoring the contracts term. In your situation I would say at best the client / agent can probably try and force you to serve out the contracts notice period but ask yourself what will they gain from this. In my opinion they won't gain much and if you haven't even started yet will gain even less. They are likely to wear what ever it cost them to find and vet you and quietly move on.

      The other aspect is what will the rejection do to your relationship with the end client. If they aren't already a customer or there is unlikely to be future business with this particular client then I guess this becomes a moot point. However, if they are bringing you repeat business then you are risking potential future opportunities.

      Thanks for your response. As long as there is no legal issues for dishonouring the contract, I can progress with the new one. I think, there is none as I have not started the new one yet!

      Comment


        #4
        Originally posted by SecureTheNet View Post
        Guys

        Can someone please advise me! I have never been in such a situation.

        I have signed a contract which starts next week and submitted all the relevant documentation.
        However another contract which I was really interested in, was being progressed very slowly for the last one month and finally they are very close to make me an offer end of this week. The new contract is the kind of role that I am interested in and they are with a far better daily rate (25% more) than the previous offer as they are in investment banking.

        My questions are..
        1. If I get the formal offer, can I decline the previous offer? If yes, what's the best way so that agency/client can be communicated in a polite way! I know they would hate me for this!
        Any advice!
        2. Is there any legal implication if I decline to join the contract next week? I use limited company to do contracting. Is there any thing to be concerned about?

        Any help is really appreciated.

        Thanks in advance
        Let me guess, this is purely about money isn't it?

        Personally I would stick to the one I had signed for a few reasons:
        1. It is the professional and ethical thing to do.
        2. Dropping the client just days before starting is a sure way of hurting my reputation, and reputation is everything in this game, and
        3. If I had been messed around and had to wait a month for an offer, I would expect the assignment to be fraught with problems.

        Just my opinion.

        Comment


          #5
          Reputation is everything in this game, if i know a few contractors who have messed agents about and now find it hard to pick up roles. But if you have decided that is what you want to do, i would offer to use the substitution clause to honor the notice period, the client and agent would probably decline, but this id likely to defuse any possibility of legal action.

          Comment


            #6
            Originally posted by JamJarST View Post
            Let me guess, this is purely about money isn't it?

            Personally I would stick to the one I had signed for a few reasons:
            1. It is the professional and ethical thing to do.
            2. Dropping the client just days before starting is a sure way of hurting my reputation, and reputation is everything in this game, and
            3. If I had been messed around and had to wait a month for an offer, I would expect the assignment to be fraught with problems.

            Just my opinion.
            Hmmm. What JamJar says mostly but at the end of the day you gotta look after yourself.

            Legally, you cant do it but as someone said agent is unlikely to pursue it. And agent is likely to forget about what you did 6 months down the line if something else comes in but client probably wont.

            Gotta to weigh it up to be honest. Pros and cons etc. Yeh its not cool to do but it depends on how much better the 2nd contract is. Theres been many examples of clients canning the day before start so it does happen the other way too. Expect to get flak from agent though...

            I'd be concerned about 3) though. Might be just really slow client but it might be a sign of problems. After all, dont want to can contract 1, turn up for contract 2 and find it all falls flat in the first week, do you? It happens. I know someone who turned up, manager had assumed budget would be signed off - it wasn't. 3 days = end of contractor. Worse still the cheeky twats tried not to pay for the 3 days!
            Rhyddid i lofnod psychocandy!!!!

            Comment


              #7
              Originally posted by SecureTheNet View Post
              Thanks for your response. As long as there is no legal issues for dishonouring the contract, I can progress with the new one. I think, there is none as I have not started the new one yet!
              But there are legal issues!!!! You are not dishonouring it you are in breach of contract. You have signed a legally binding document and can be held liable for losses. Don't take this lightly. Yes... you could get away with it but the best outcome will be a lot of angry phone calls and threats, a loss or reputation and a bridge burned for awhile.

              Doesn't matter if you have started it, your signature is on the paper accepting it. You are now liable.

              At the end of the day do what is best for you but don't go round with this mercenary thinking you can drop clients just because you fancy it. One day someone will get sick of all this and take you to task. They have every right and the law is on their side. You have to take this seriously. If you are going to not take the contract you signed for do it as quickly as possible. Giving them a week isn't good but it is better than doing it on the Friday. You are much more likely to get in a lot more trouble the longer you leave it.
              'CUK forum personality of 2011 - Winner - Yes really!!!!

              Comment


                #8
                NLUK, seriously, who's going to sue? It's not worth the effort.

                To the OP, if its a one off - do it .

                If not, then tell the other client co that you want to go but need to give notice, and give notice

                Or finally, just honor your word and stay with the first one .

                My opinion is worth what you paid for it.

                Comment


                  #9
                  Originally posted by Scoobos View Post
                  NLUK, seriously, who's going to sue? It's not worth the effort.

                  To the OP, if its a one off - do it .

                  If not, then tell the other client co that you want to go but need to give notice, and give notice

                  Or finally, just honor your word and stay with the first one .

                  My opinion is worth what you paid for it.
                  If I was the client and it cost me money I would do my best to recover that money, I would seriously consider small claims court.

                  Comment


                    #10
                    NLUK is right - breach of contract is a legal issue - whether or not the client/agency sues will be dependent on how p*****d off they are and how many times they have had a contractor drop them in the cart at the last minute
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