Restrictive clause in contractor agreement

unforeseen

Don't forget that it is a business contract is between two companies rather than business to individual. 
Are you sure that restraint of trade would apply. Due diligence does for business contracts and that appears to be missing in this case.

I am sure that for the amount that the agency are claiming then they can prevent the Ltd Co from being dissolved.

General_Grant

unforeseen said:

Don't forget that it is a business contract is between two companies rather than business to individual. 
Are you sure that restraint of trade would apply. Due diligence does for business contracts and that appears to be missing in this case.

I am sure that for the amount that the agency are claiming then they can prevent the Ltd Co from being dissolved.

Hardly matters if there is no money in the private limited company, does it?

steampowered

unforeseen said:

Don't forget that it is a business contract is between two companies rather than business to individual. 
Are you sure that restraint of trade would apply. Due diligence does for business contracts and that appears to be missing in this case.

Yes, the restraint of trade concept and penalty clause concepts are general contract law concepts that apply to all contracts (see e.g. https://www.nelsonslaw.co.uk/penalty-clause/). Consumer law doesn't apply in this situation but, thankfully for the Op, those bits of law do.

JohnDorian

Don’t know if you are aware of the below forum but I would research on there. I’m not a member but have used the forum for the last three years and if it can happen to a contractor, it most probably has already happened to someone on there:

https://www.contractoruk.com/forums/

I don’t know much about restrictive covenants other than they have been in all of my contracts and have been pointed out by my accountant at contract. They don’t concern me as I don’t really see myself being in a situation like yours. However, my first line of thought would be to check the contractor forum before doing anything else or taking any further action as I am sure there is going to be a piece around the agencies actual loss in the action you take and it’s best you understand what that involves.