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That is a creative idea, but it won't work. If the contract states that he can not change the password, then if he undertakes any actions to circumvent that restriction, the other side could then file suit against him for "intentional interference with contract".
So the long and short of it is that if the company has violated the contract in any way, his recourse would be to file suit against them for breach of contract and seek damages. But if he takes any actions that would result in a breach of the contract, either personally or otherwise, they can hold him liable.
Additionally, if he transfers legal ownership of the account, the transferee would "step into the his shoes" and be similarly bound under the contract restriction.
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Well, that is an interesting clause. With a plain language reading of it, it appears that if the contractor was to transfer his interest to another party with no malicious intent, then the contractor would be able to terminate the contract. The question would then be did the contractor transfer the business strictly to sabotage the company? If so, then I think that they could still hold contractor liable as it was done for fraudulent reasons.
But if it was a legitimate sale/transfer of the contractor's interest, then it appears that it would give grounds to cancel in writing. Presumably the company would then have to enter into a new contract with the new contractor.
I think that would definitely be faster and less expensive than filing suit for breach of contract. If there were some sort of payment, that would also help "validate" the transfer, even if it were some type of promissory note that may or may not be enforced by the seller.
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