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Ben Jones
Ben Jones, UK Lawyer
Category: Law
Satisfied Customers: 46797
Experience:  Qualified Solicitor - Please start your question with 'For Ben Jones'
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I wish to know about the validity/status of a work contract

Customer Question

I wish to know about the validity/status of a work contract I signed about 3 years ago.
This is a rolling contract and so if no one requests its terminus it should go on forever.
I signed this contract when I was working as a sole trader. I created a limited company over two years ago and since then I have been issuing invoices via my company instead.
There is no other contract between my company and the company I provide work to only a gentleman's agreement.
Submitted: 7 months ago.
Category: Law
Expert:  Ben Jones replied 7 months ago.

Hello, my name is***** am a qualified lawyer and I will be assisting you with your question today.

Customer: replied 7 months ago.
Thank you.
Shall I send you a copy of the contract?
Expert:  Ben Jones replied 7 months ago.

Hi there. Yes, please do send me a copy so that I can take a look at it?

Customer: replied 7 months ago.
Please find the contract attached.
Expert:  Ben Jones replied 7 months ago.

OK, thank you for sending me the attached document. I will review the relevant information and laws and will get back to you at the earliest opportunity. There is no need to wait here as you will receive an email when I have responded. Also, please do not responded to this message as it will just push your question to the back of the queue and you may experience unnecessary delays. Thank you.

Expert:  Ben Jones replied 7 months ago.

So just to clarify - do you wish to know if this contract is still valid and legally in operation? Can you let me know if once you started working as a Ltd company you continued working under the same terms, even if this was not documented in writing?

Customer: replied 7 months ago.
I just wish to know if this contract is legally in operation.
Upon starting as a Ltd company nothing really changed work wise, we didn't discuss any details at all and work just carried on as before.
Expert:  Ben Jones replied 7 months ago.

There are at least a couple of possible situations in the circumstances. The issue is that it would be almost impossible to say with certainty which one it is and only a court can make that decision.

First of all it could be implied that the contract had ended, even if no official notice had been served by either party. If one of the parties, namely you as a sole trader, was no longer working and there had been no relations between you for these last couple of years then t could implied that the services had been terminated.

On the other hand, it is possible that the contract had continued to exist in place but it had simply changed the name of the parties to reflect the change of entity with which the company was dealing. So you could have this contract with all its terms still effective but instead of you as a sole trader, it would be substituted with the limited company you had created and replaced the sole trader with.

These are the two most likely scenarios. If you are unsure if the contract still exists or not and you wish to know with certainty that it has terminated, ten you should still exercise the formal termination clause in it, which requires 14 days notice to end it. Once that notice has been served the contract would officially come to an end at the end of that period.

I hope this has answered your query. I would be grateful if you could please take a second to leave a positive rating by selecting 3, 4 or 5 stars - this is an important part of our process and recognises the time I have spent assisting you. If you still need me to clarify anything else, please get back to me on here and I will assist further as best as I can. Thank you

Customer: replied 7 months ago.
In order for the second option to exist, changing the name of the entities to reflect the new reality, a new paperwork had to be prepared and signed or is it automatically implied by the continuation of the work together?
Expert:  Ben Jones replied 7 months ago.

it does not necessarily need new paperwork - changes can be implied through the actions of the parties. Hope this clarifies?

Ben Jones, UK Lawyer
Category: Law
Satisfied Customers: 46797
Experience: Qualified Solicitor - Please start your question with 'For Ben Jones'
Ben Jones and other Law Specialists are ready to help you
Customer: replied 7 months ago.
Mr. Ben Jones, thank you very much for all your help.
Now have an educated view on this subject.
Kind regards,
Pedro Lopes
Expert:  Ben Jones replied 7 months ago.

You are welcome, all the best

Customer: replied 7 months ago.
Just one last question if I may.
I will be serving a "notice of termination" letter tomorrow. I have looked up a template and will be using it.
What type of acknowledgement should I expect from the other party? Written? Verbal? Do I need witnesses?
Thank you.
Expert:  Ben Jones replied 7 months ago.

ideally a written acknowledgement - no witnesses are needed for this, just copies of the correspondence in case you need it

Customer: replied 7 months ago.
Once again many thanks for your help.
Best regards,
Pedro
Expert:  Ben Jones replied 7 months ago.

you are welcome, all the best

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