🐈
» Forums » Coffee Break » Paused Contract Breach and Damages
Page options
cc521783
Community Member

Paused Contract Breach and Damages

I hired a company and paused the contract to do cross-analysis. During the paused contract, the company performed work on the account, unauthorized and unrelated to our contract, in turn causing large financial damages. Who is liable for these damages?

7 REPLIES 7
prestonhunter
Community Member

Michael:

 

Upwork provides a service that allows clients to find, hire and pay freelancers.

 

Upwork is not party to these contracts.

 

If you are interested in "damages," then that is something you would pursue outside of the Upwork platform.

 

re: "Who is liable for these damages?"

 

A short answer to your question is:

Not Upwork.

allpurposewriter
Community Member

You're looking for legal advice in a chat-room-type forum full of freelance web developers, copywriters, editors, voice-over specialists, translators, graphic designers, virtual assistants,  engineers, illustrators, cartoonists ... need I go on?

Still, cheaper than hiring a lawyer and a better class of people, too.

right.jpeg

0fddf45e
Community Member

A paused contract breach occurs when one party fails to fulfill their obligations under a contract, and the other party decides to pause or suspend the contract instead of terminating it. In such a situation, the party who has breached the contract may still be liable for damages caused by the breach, even though the contract has been paused.

The damages that can result from a paused contract breach can vary depending on the specifics of the contract and the nature of the breach. Some potential damages that may be sought include:

  1. Actual damages: These are the direct losses suffered as a result of the breach. For example, if a contractor fails to complete a construction project on time, the owner may seek damages for any costs incurred due to the delay, such as increased construction costs or lost revenue.

  2. Consequential damages: These are the indirect losses suffered as a result of the breach. For example, if a manufacturing company fails to deliver parts to a customer, the customer may seek damages for lost profits due to an inability to fulfill their own orders.

  3. Liquidated damages: Some contracts may include a clause that specifies a predetermined amount of damages to be paid in the event of a breach. These damages are known as liquidated damages and are designed to provide a measure of certainty and predictability in the event of a breach.

  4. Punitive damages: In some cases, a court may award punitive damages to punish the breaching party for their conduct. These damages are not intended to compensate the injured party for their losses but rather to punish the breaching party and deter future breaches.

In any case of a paused contract breach, it's important to carefully review the contract terms and seek legal advice to determine the appropriate course of action and to ensure that your rights are protected.

Click Here: **Edited for Community Guidelines**

As a client, I have hired over 180 freelancers on Upwork. I have been very successful as a client, which is why I keep coming back to use the platform again and again.

 

One of the best, most effective tips I have for any client using Upwork is to ALWAYS keep in mind this mantra:

 

"There is no such thing as breach of contract on Upwork."

 

Alon's ChatGPT-generated or copy-pasted blob of text has no real application to successfully using Upwork as a client.

 

It doesn't matter whether or not you can THEORETICALLY apply some external legal concept to things that happen on Upwork. In practice: Clients can end a contract at any time. Freelancers can end a contract at any time. There is no element in the Upwork user interface that recognizes "breach of contract" as a concept. It's not part of the Upwork culture or corporate policies. Effective Upwork clients DO NOT have "breach of contract" as part of how they operate on the platform. Effective clients know how the platform works, know how the buttons work, and they manage their contracts and freelancers accordingly.

k_froudarakis
Community Member

Michael, you're asking for help but you are not giving us a lot to go on.

 

You say the following:

 

You hired a company

How? What do you mean? Do you mean that you hired an agency?

 

The company performed work on the account unrelated to our contract

How can work unrelated to your contract cause you financial damages? On which account did they perform work, unrelated to the contract, that would have an impact on you? Generally speaking, a paused contract means that they cannot be paid for the work they're doing nor can they be accumulating fees during that time. Did you have them performing financial transactions on your behalf as part of the work you hired them to do? And if so, couldn't you have revoked their privileges while the contract was paused?

 

There are a lot of things that are not clear in your post. Also, Anthony is right. This is not the place to ask this question. I would suggest you take it up with Upwork Support, as a start, and maybe a lawyer down the line.

 

P.S. Alon, that was not helpful man.

Latest Articles
Learning Paths