Breach of an expired contract
2 years ago
I had signed a service agreement with a company 3 years back for a year. That one year completed on 8th June,2019. However, we continued to work together. They have been violating the terms of payment dates from the very beginning. Now, my question is does the agreement stands to be void and terminated or i have to continue to comply with all the terms yet. One of the clause states that i cannot work with any other competitor companies unless and until i get a written permission from them. But now i want to work in the same field with two companies.please help. If i go ahead with working with another company of their sector, will I be punishable?
Ankur Goel @ Complete Law Shield
Responded 2 years ago
but generally, if they are violating terms then you can end the contract by sending legal notice.
But you can not do business with other competitor companies till you keep this contract.
Ayantika Mondal @ Prime Legal
Responded 2 years ago
After expiration of an agreement it is no longer valid but if you continue working as per the terms of the agreement then such a situation will be legally bound by the agreement since both parties by their conduct have entered into contract and it is an implied agreement. Therefore, you can be held liable for working two jobs. The best option would be that you quit this job and select another since cases of implied contract are difficult to prove and enforce. Take your full payment and leave as soon as possible.
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If you want to work then you will have to choose a company from the two options available to you since even though a contract is no longer valid once it has expired. In this situation, the contract has expired, and the parties have entered into an implied-in-fact agreement. An implied-in-fact contract is one in which the parties do not expressly agree but are implied by their actions. Such a contract is valid, and you must adhere to the conditions of the agreement.
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You have to chose one of the two companies since your contract was renewed impliedly.
Ankita Jaiswal
Responded 2 years ago
For the no-compete clause please go through the agreement and if it prohibits then you are prohibited. unless you are out of that contract you can not do so.
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