My company, based in the U.K., had a software development contract with another company, also based in the U.K.
The contract was mostly standard, as far as I could tell when comparing it to other contracts I have worked with.
I would work for a daily rate of £n/day, invoiced monthly and then paid within 30 days of invoice. There would also be some other clauses relating to such things as, for example, after termination, my company cannot provide services to any major competitor of the other company for a period of 6 months, poach existing employees, or share confidential information.
Unfortunately, after submitting an invoice in April for works in February and March, the other company failed to make payment after giving multiple assurances that it would be paid, then suddenly raising issues at the end of June for works in March, and making demands and other unfortunate behaviours.
After minor legal action, all invoices owed have now been paid, a total of 80 days after the initial invoice was submitted (50 days overdue).
My question is: can the other company enforce any other clauses, such as restrictions for 6 months after termination to work for other companies, not approaching company employees for other work, etc as outlined in the initial contract? Does non-payment and the legal action so far constitute a breach of contract that makes the rest unenforceable?
I appreciate the answer may be "it depends" and is not legal advice, but comments would be useful. Thanks.
