Legal Question in Business Law in California

I'm a computer consultant. I am working as a subcontractor through a large agency. My contract has pretty standard NDA and non-compete sections set up as "obligations surviving agreement". Payment terms are spelled out clearly: payment within 30 days of invoice date. Client keeps paying me 5-6 weeks late. I'd like to dump them and contract directly with their client in hopes of getting paid on time. Does their breach for failure to pay absolve me of my NDA and noncompete obligations? What about other clauses like Jurisdiction (they are in CA, I am in KY, contract says "all actions will be filed in California").


Asked on 2/27/12, 4:33 pm

1 Answer from Attorneys
Edward Hoffman Law Offices of Edward A. Hoffman

It's impossible to say whether the non-disclosure and non-compete clauses are enforceable at all without more information. But to the extent they are enforceable, the agency's late payments do not excuse you from honoring those terms.

Choice-of-forum clauses like the one you describe are generally enforceable. A party's alleged breach does not change this fact. After all, there would be no need to select a forum in the first place unless one party claimed that the other had breached the contract.

Read more
Answered on 2/27/12, 4:40 pm


Related Questions & Answers

More Business Law questions and answers in California