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  1. #1
    Join Date
    Mar 2009

    Default Penalty for Violation of Confidentiality Clause

    I thought it would be appropriate to post this separately; I apologise if it should have gone with my first query.

    In my IC contract, the client ("employer") has specified a fixed "fine" to be paid to them if I, the contractor, violate terms of confidentiality. I do not foresee any breaches of confidentiality, but this item of the contract just looks a little fishy to me. Is it appropriate and legal, etc. I have reservations overall about signing with clauses like this included.

    Thanks again for your help.

  2. #2
    Join Date
    Sep 2005
    Behind a Desk

    Default Re: Notice Requirement and Pay Forfeiture Clause

    The "fine" sounds like a liquidated damages clause. Whether or not it's enforceable depends upon many factors, not the lease of which is whether the amount reasonably approximates their damages or is intended as a penalty.

  3. #3
    Join Date
    Mar 2009

    Default Re: Penalty for Violation of Confidentiality Clause

    Thank you for both of the above.

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