Legal Question in Business Law in California

Company A (client) enters into a contract with company B (vendor ) for services. Company B then enters into a contract with an independent contractor to perform the services. Independent contractor then terminates the contract with Company B. Can company A then decide to enter into a contract with the independent contractor for services?


Asked on 8/11/09, 11:27 pm

1 Answer from Attorneys
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Yes, as a general rule. "Independent contractor"may be breaching her contract with B, but this does not prevent A from hiring or retaining "independent contractor." We also have to be on the alert for a breach of the contract between A and B. However, if the question is only whether A may hire IC, the answer remains, "generally, yes."

Can't give the deal a full clean bill of health without knowing if (a) trade secrets are involved at all, and (b) whether A improperly induced IC to breachher contract with B. Misappropriation of trade secrets and inducing breach of contract are unlawful.

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Answered on 8/12/09, 12:46 am


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