Turnaround Strategy

[Nickolai Naydenov]

Thank you all for your input. I didn't mention any names or type of business because the company he contracts to is a massive company and the weekly turnover of my friend's company is millions, I don't want to put anybody at risk. I believe the whole issue is a relationship issue because in any business, relationship is really 90% of your business. My question was more about relationship than anything else. We discussed it, I hope he follows up on the strategy and keeps the business.

Thank you all once again, your input is much appreciated.

[Nickolai Naydenov]

Just another question I've got, what is unfair business practice and is it valid between two companies that have a contact? I looked on the net but it all seems to be consumer protection?

[Miro Bagrov]

Just another question I've got, what is unfair business practice and is it valid between two companies that have a contact? I looked on the net but it all seems to be consumer protection?

What he is doing is obviously illegal. It is illegal to cancel a contract without good warning, without good reason and replace the worker. This may be legal in some countries, but not here.

Firstly the cancellation of the contract is to be examined:
The contract will contain a termination clause, limited to time, or to job completed, or to non-performance.

The cancellation of a contract outside this scope is called technically a "Material Breach Of Contract".
This can come in several forms.. Failure to give notice of termination, failure to allow your friend to continue work on site. Failure to allow access to working environment, failure to pay the amount owed.
The contractor MUST GIVE NOTICE, in writing. The notice must be for a reasonable time period ahead (it is not reasonable to cancel with too short notice.)

Penalties for Termination & Remedies:
These result after a breach of contract and after a legal authority has ruled in favour of your friend:
Payment of Damages... Simple - restoring the loss suffered financially.
Proof and calculation is based on the difference between what he should have had and what he actually received.
However, Damages are always the last resort.
Firstly the legal authority will order both parties to negotiate. If the parties can not resolve it, or do not come to the hearings, then other action will be taken.
So either way, prepare for more face to face contact.

In short, the law aims at restoring the person who suffered loss to the same position before the loss. Not giving more or less.
Another thing to consider: Impossibility of Performance - this means that you can not be expected to do the impossible. If it's a construction site and the person who provides the cranes is locked out of the site, and now can not render his services, this means it was impossible. By locking the crane provider out, and preventing his work, the site manager has committed breach of contract. There already legal action is possible.

I suggest keeping things in writing where possible.