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Phillips Esq.
Phillips Esq., Attorney-at-Law
Category: Business Law
Satisfied Customers: 12957
Experience:  B.A.; M.B.A.; J.D.
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I have been a contractor (shipping) for 7 years with the same

Customer Question

I have been a contractor (shipping) for 7 years with the same company in N.Y
Last August the owner passed, the company was sold to a 20 billion Japanese company.
I signed a 2 year contractv1 week before the passing of the president, from Aug 2011-Aug 2013.
My business has been financially steady since the beginning of the contract, the contract was renewed in writing every two year, with compliments.

Since the company was sold March 28 there have been many changes for contractors.
I now have a wonderful opportunity with a competitor however I am under contract.

On June 1 corporate instituted a clause in my contract stating my revenues were below the contract amount. As a result they revoked my exclusive territory.
This was a very unpresidented announcement without a call or any discussion.

I really need someone's advice
I don't want to remain at this job but cannot risk the non compete clause (90 days)
Do I simply ask for contract termination (subjecting myself) ?

Thanks very much
Submitted: 2 years ago.
Category: Business Law
Expert:  Phillips Esq. replied 2 years ago.
Thank you for giving me the opportunity to assist you. I encourage you to ask me for clarification, if you are not clear with my Answer.



Question: I have been a contractor (shipping) for 7 years with the same company in N.Y
Last August the owner passed, the company was sold to a 20 billion Japanese company.
I signed a 2 year contractv1 week before the passing of the president, from Aug 2011-Aug 2013.
My business has been financially steady since the beginning of the contract, the contract was renewed in writing every two year, with compliments.

Since the company was sold March 28 there have been many changes for contractors.
I now have a wonderful opportunity with a competitor however I am under contract.

On June 1 corporate instituted a clause in my contract stating my revenues were below the contract amount. As a result they revoked my exclusive territory.
This was a very unpresidented announcement without a call or any discussion.

I really need someone's advice
I don't want to remain at this job but cannot risk the non compete clause (90 days)
Do I simply ask for contract termination (subjecting myself) ?


Response: You need to ask to be released from your contract. However and unfortunately, you may still be held to the non-compete agreement. So, when you are asking for a Release, make sure it is specific that the Release releases you from ANY and ALL obligation under the contract. Otherwise, the company may come after you for violation of the non-compete agreement if you start work immediately in the territory that is prohibited by the non-compete agreement.

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