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Independent Contractor Compensation/Broken Contract

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johngault

Junior Member
What is the name of your state (only U.S. law)? NM

Hello All,
This could be considered an employment issue, but it is related to a contract, so I'll post here. Sorry if it's in the wrong spot.....

Lengthy, but I’ll attempt to articulate as clearly as possible. Here goes.....

I signed a 12 month contract with “Company A” in support of their contract with “Company B.” At the time of my contract’s ratification with Company A, Company A did not have a binding contract in place with Company B, which would have enabled them to fully satisfy the terms dictated by the contract I signed.

This fact was known by Company A, but was not disclosed to me (orally or in writing) prior to the issuance/acceptance of my contract. Indeed, were it disclosed, I would not have signed with Company A, a fact which was made clear to Company A managers during the contract negotiation process (I did not want to sign a contract for less than 12 months in duration).

Even though Company A anticipated that its contract with Company B was going to be extended (which would enable them to meet the terms of our contract), Company A’s agreement with Company B reached termination without renewal.

Four points of contention as I see them:

1) I believe Company A omitted the disclosure regarding the length of its existing agreement with Company B because they desperately needed someone to fill the position to which I am assigned, and they knew that I would not sign for any period less than 12 months;

2) By accepting the contract with Company A, which was done so without knowing all of the facts regarding its relationship with Company B, I bypassed other potential job opportunities;

3) Company A gambled (with my future) that an extension between them and Company B would be reached. They lost;

4) There is nothing in my contract that indicates that my compensation/opportunity to work is contingent upon Company A’s relationship with Company B remaining viable throughout the specified term. In other words, if Company A was aware that their agreement with Company B lapsed in “Month X”, and without including a contingency clause of some sort in their contract with me, my contract should have only been issued through “Month X”, a period during which Company A could knowingly honor its portion of the agreement.

My question is this: Is Company A obligated to compansate me (or at least provide me with the opportunity to work on other company projects/contracts) in spite of the severance of its relationship with Company B? Do I have a valid claim for compensation?

If this is the case, and they refuse either course of action, what steps would I take to pursue legal recourse?

Any advice offered is appreciated.

JG
 
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