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Unfair terms and conditions!!!!!

3 replies [Last post]
Sun, 2008-03-16 11:10
Gayantha Abeywardena
User offline. Last seen 12 years 20 weeks ago. Offline
Joined: 27 Feb 2008
Posts: 41
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Hi Gentlemen,

One of our Client (taking a maintanace contract for security system) is proposing to put a condition as follows,

We cannot provide the similar service to any other institute during the contract period and even one year after the termination.......

can we agreed this kind of condition what is the guidance we have to avoid this kind of condition...

GA
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Replies

Sun, 2008-03-23 09:59
#1
Gayantha Abeywardena
User offline. Last seen 12 years 20 weeks ago. Offline
Joined: 27 Feb 2008
Posts: 41
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Hi James,

They have put this condition under the heading of "Non compete" they want to have an advantage of this system while other competitors cannot get it from us without their consent... problem is we are stuck against to one institute and even after one year of the termination...

GA

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Wed, 2008-03-19 10:48
#2
James Barnes
User offline. Last seen 2 years 7 weeks ago. Offline
Joined: 6 Sep 2007
Posts: 243
Groups: Petro-Chem / Oil & Gas
the phrase you are looking for, I believe, is "contractor beware" ;-)

if you don’t like the term, refuse to accept it. Also, check with a lawyer whether or not it is enforcible. Often non competition clauses (at least in employment contracts) breach legislation so it doesn’t matter whether they are in there or not, they can’t be enforced. You do need a lawyer / legal expert to advise you on your specific case though as it very much depends where you are operating.

I NEVER met a contractor who would sign off on such a clause in an execution contract.

Why do they want it? I can only think that it’s to ensure that you have resources to complete the oproject and fulfuill your maintenance period but if so then it’s misguided. You’re no use to tehm if bankrupt. A better way (and far more common practice) is the use of a performance bond, which I believe is a standard part of the FIDIC terms anyway.
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Wed, 2008-03-19 01:16
#3
Gayantha Abeywardena
User offline. Last seen 12 years 20 weeks ago. Offline
Joined: 27 Feb 2008
Posts: 41
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Dear All,

I want to clarify as there is no precautions in the FIDIC to avoid unfair terms and conditions...

Is there no codes to conduct by consultants when they are putting speacial conditions to Conditions of Contract..

Gayantha
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