Do you read the boilerplate?

It is often said that the devil is in the detail.  So how about boilerplate clauses in your commercial contracts?

Services agreements often include a cluase prohibiting assignment of the services, as the customer wants to ensure that their careful choice of service provider is not second guessed by that service provider handing on the contract to any unknown party.

So what happens when the service provider goes insolvent?  You’d expect the liquidator to step in and find a new service provider to keep things going.  Well, a recent case has ruled that a non-assignment clause binds a liquidator as well (Ruttle Plant Hire -v- Sec. of State for the Environment and Rural Affairs).

I started this post with a well known saying, so how about ending with one.  Be carfeful what you wish for.

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