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Neha (Software Engineer)     04 February 2016

Service agreement breach consequences

Hello People,

I need an urgent advise for my brother. He joined company ABC in US with a service agreement of around 10,000 US $ in case of termination before 1 year. Now, he got an offer with other company XYZ and he was trying to get joining bonus of 5000 US $ to compensate the loss as even he didnt have the money to pay. Instead of paying the bonus, the company XYZ is saying to breach the contract and join the company without bonus and once he is able to save money in 15 days (which doesn't look feasable to me), he can pay them out after 15 days.

The contract was made in India (Delhi) and he is working in US. Now, in case he terminates the bond, what exactly will happen? Will an FIR will be logged against him or a case would be registered as Company XYZ's lawyer says that it will take minimum 15 days to register a case against him. Would there be chance that he would be called back before 15 days?

We really need to convince the lawyer of XYZ , that we dont want to enter into any such case but we dont have any point where we could convince him and we dont want to leave offer also.


Please reply urgently if anyone can help.







 3 Replies

Kapil Chandna (Lawyer at Supreme Court of India)     04 February 2016



Please share the copy of the agreement to get a correct opinion. 


Warm Regards

Kapil Chandna Advocate





Kumar Doab (FIN)     04 February 2016

The service agreement or Bond whatever it is ( you alone would know it) was signed at Delhi, as per your post.


The company that has issued the employment/contract of employment/appointment order and then Bond is same or different and are both based in India or US?


The Bond is created in lieu of what: say some some certified training from some certified Instt?


Do you have the copy of all communications in writing/on record exchanged for this offer before and after signing the bond?


Apparently you do not seem to have good negotiation skills and have not negotiated a good deal.


Why would you or anyone agree to forgo joining bonus and breach the agreement that you signed by your free will and pay liquidated damages and/or fall in legal traps and face litigation?


What good you see in offer made by XYZ? Is it worth the loss of 10000$ and worth taking a risk?


Why are you believing the verbal communications of lawyer of the company?


It shall certainly be beter if all documents on record are examined by an able counsel.





compliance   28 April 2016

Conctact with leagl advisor.

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