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Restriction Clause
by alphonso at 17:27 23/10/14 (Ask-Legal-Accounting)
I have recently had a contract extension to finish a project for a client.
I've just found out that the clients customer (a large corporate) has decided to cancel the project with my client and give it to another company (one that has a existing relationship with my client and shares a director). I've also been told that instead of being given notice, myself and some other contractors can transfer over to the other company to finish the project.

Problem is, the other company only want to deal direct so cutting the agency out of the picture. I have a 12 month restriction clause with the agency which covers "similar services" to the client, the clients customers, subsidiaries and associated companies, which is all pretty vague.

Because the companies share a director, could they be classed as associated companies?

Does anyone know where I stand legally on this?


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