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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Business Law
Satisfied Customers: 114757
Experience:  All corporate law, including non-profits and charitable fraternal organizations.
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Our employee got a project @ company X via company Y.

Customer Question

Our employee got a project @ company X via company Y. Company Z is the prime vendor of X and Y is vendor for Z. We are vendor of X but this project was assigned to Z by X. We signed a 2 years contract with Y that we will not have any of our consultants work for the same project AND same manager @ X. After 1 year manager changed for the project. After 2 years project extended but a new contract created by X replacing Z with company K. K contacted us directly - we signed a contract with A for the same project @ X. Y stopped our last 3 months payments not responding to us. What are our options?
Submitted: 6 months ago.
Category: Business Law
Customer: replied 6 months ago.
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Expert:  Law Educator, Esq. replied 6 months ago.
Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.
If this contract arrangement violates your previous contract you would have to either secure written consent of Y or terminate your contract with X and inform them because of your contract with Y they too could be liable for interfering with that contract and you could be liable for breach of contract. If Y is not communicating and not threatening to sue, then I would suggest doing nothing at all until they communicate with you and if they do so then you can either negotiate consent or claim that because they refused to previously communicate with you and stopped payments their contract was not valid and enforceable and you had a right to take the job based on Y's breach of the contract with you.
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Customer: replied 6 months ago.
We don't have any kind of contract with X. We have new contract with K. And K with X. The "Non-compete is limited to respective manager and not for further business" that's what we signed with Y earlier. It's in NDA. As per NDA they need to give us notice of 15 days if there is any dis engagement with Z. But we didn't receive any. After that K send a contract directly.
Expert:  Law Educator, Esq. replied 6 months ago.
Thank you for your reply.
Sorry for all the confusion. If you received no disagreement as per the contract, then at this point you would be in the clear for a breach action though (sorry if I got the alphabets mixed up, but the general premise is the same). So at this point they have not paid you, that is a breach action and they did not give you notice objecting meaning they have waived that provision in the NDA for not objecting.
Customer: replied 6 months ago.
As per NDA they agreed to pay 45 days after CLIENT receipts the monthly invoice. We had a confirmation that X and Z already maid their payments to Y .
Expert:  Law Educator, Esq. replied 6 months ago.
Thank you for your reply.
So the non-payment issue is a breach of contract for which you can sue them over and seek to get your payment.
Customer: replied 6 months ago.
Thank you for Info.
Expert:  Law Educator, Esq. replied 6 months ago.
Thank you for your reply.
Please do not forget to leave positive feedback by clicking on the 5 stars at the top of your page , as the experts are not employees of the site and get no credit for spending time with customers unless they leave positive feedback. Thank you.