'I relocated to take a contract for a year, and 10 months down the line I was asked to extend, although some contractors were then being cut from the project. I did so for 9 months at a slightly increased rate, but shortly after the extension started I was told by the client that I myself would be finishing 6 weeks later, because of budget cuts. I finished after that 6 weeks, having heard nothing from the agent. Because I'd relocated I've found it very difficult to get another contract.'
I've read your contract. Whilst I can understand that you feel hard done by, it seems to me that this is one of those situations where there really is very little that you can do about it.
As you say, your contract was - at least on the face of it - for 9 months. It contained a term giving the agency the right to terminate without notice, and without having to show any fault on your part, if any contract between agency and Client for your services was terminated. And, quite simply, that appears to be what happened. Whilst it is true that the agency did not give you notice, it is clear that your contract ended because the client no longer required you. [It may not be relevant to the legal issues, but you had about 6 weeks informal 'notice' of this from the Client. Not formal contractual notice maybe, but you did know what was going to happen.]
It may be that the agency was in breach of contact because it did not actually give you notice itself; however, since the agency was entitled to terminate at the same time as their contract with the Client for your services ended, then provided that contract did in fact end then (as surely it must have done), this breach of contract by the agency has not caused you any loss - your position would have been exactly the same if the agency had given you such notice to terminate immediately. Thus you cannot show any loss resulting from the breach of contract - only from the overall chain of events, which I am afraid does not help you.
Would it surprise you to know that, under that contract, your position would have been exactly the same if the Client had given you no notice at all? Or if they had told the agency, but neither Client nor agency had told you? Well, believe it or not, it would. Against the background of that contract, all the agency has to do is to show that the Client has ended its own contract with the agency for your services; the agent is then entitled to terminate your own contract, without notice. Remember, we're talking here about termination, without any fault on your part.
This all follows from the terms of the contract you signed. And (to rub salt into the wound) signed again, when you extended.
In general, parties to a contract are regarded by the law as grown-ups, free to take their own decisions as to what terms are (and are not) acceptable in the contracts they enter. Provided the contract is not for an illegal purpose, or to be performed in an illegal way, then apart from
then in general it is fair to say that the Courts regard all the terms which are adequately clear in their meaning as binding on both parties. There are occasions when the Courts will add extra terms - implied for some legal reason - into a contract. But, generally speaking, and apart from the types of term I've referred to above, what's in the contract will be binding on both parties. And (dare I say), so it should be - it is generally more important to know with confidence where you stand, rather than to have the uncertainty of not knowing - which is the position in which you (and the agency) would be, were it otherwise.
But, of course, you will not know where you stand if you do not actually read and understand the contract. And if you do not do this before you sign, you will lose the opportunity to have some say in where you will be standing later on, by negotiating out terms which are unacceptable. And that, I think you know, is what the 20:20 vision of hindsight tells you that you should have done here.
In my experience, it is unheard of for an agent to terminate a contract early, other than at the Client's instigation; and (quite possibly) of all the termination provisions, it is terms allowing the agent to terminate early, without either notice or fault on your part, that should scrutinised most closely, fully understood, and (preferably) negotiated out before signing. It's up to the agent to negotiate terms with the client which ensure that if such termination happens and they have to pay you notice, they are able to recover that cost from the client. After all, the agent too is a grown-up.
7th January 2000
I'd really appreciate your feedback on this FAQ - so mail me and tell me what you think of it, if it's been useful to you, or let me know of any specific problem you have where I may be able to help.
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