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Legal Issues with working with client independantly of hiring company
29-Aug-2023 (In Corporate Law)
Hi,
I have been contracted by a company (say ABC) to provide certain services to their clients. I also own an LLP (say XYZ) which provides this service (in addition to others). The contract with ABC does not have any non-compete clause. I have been assigned a client by them who is very unhappy with the overall company processes of ABC and wishes to engage with me independantly of the hiring company. He will be disengaging with ABC entirely. Is there a legal issue in working with the client through XYZ since I was introduced to them through ABC?
need to go through your agreement with ABC because usually these types of agreement do have confidentiality clause and other restriction clauses which binds you to enter into agreement with third party through them. so if you still want to persue then there are methods to proceed ahead.
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Adv. Pawan Prakash Pathak
Delhi | 200+ Answers
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Does not appear to be any issue per se, as there wasnt non compete clause and further u contracting now in LLP capacity...You could send me the contract, to look for any risk for you. I am an Advocate cum CA, can advise u adequately.....
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Adv. Sumit Kansal
Delhi | 25+ Answers
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hi,
with respect to your query, even if there is no non compete clause in your agreement with them. you do not know what are the terms and conditions of the contract between the client and ABC.
if there is nothing which is stopping either of you directly or indirectly then you can go ahead with it.
it would be advisable if both of you get your contract vetted by a professional before making any decision
with respect to your query, even if there is no non compete clause in your agreement with them. you do not know what are the terms and conditions of the contract between the client and ABC.
if there is nothing which is stopping either of you directly or indirectly then you can go ahead with it.
it would be advisable if both of you get your contract vetted by a professional before making any decision
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Adv. Poorvi Singh Chaudhary
Delhi | 25+ Answers
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As such there is no issue in taking up the client for providing similar services in the absense of a non-compete clause. However, you need to check whether the agreement has a non-solicitation clause as well, which may bar you from taking up ABC's clients, which would otherwise be in breach of the contract. Further advice can be provided only after perusing the agreement.
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Adv. S Shiva
Delhi | 25+ Answers
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