implications of a pre-contractual agreement with potential future employer?

I have only seen this being done for football players that have running contracts that will expire in a year's or two year's time and want to make it easy for the next football club to sign them afterwards, but I have never seen it in other industries so I don't know if it's common. My question is: is it common or wise to sign a pre-contractual agreement with a potential future employer so that one agrees to sign a contract in a year's time, after the current contract with the current company expires? If so, what are usually the clauses of such pre-contracts in the UK?

Contract Employers

asked Apr 10 '12 at 18:23

6152142613526
68 points

A country to which this will apply is a must. I have not heard of this in the US. Lawyers may correct me but signing a contract to agree to a contract seems a bit redundant. – Karlson 12 years ago
This would be in the UK. – 6152142613526 12 years ago

2 Answers

Reliance upon a pre-contractual agreement would be wrong in your circumstances. You must enter into proper contract with your existing and future employer.The same is legally possible in UK and elsewhere. Consult a good lawyer/law firm of your choice.

answered Apr 12 '12 at 20:10

Ram K Kaushik
31 points

Under the laws of England and Wales, pre-contract agreements are
usually marked as ’subject to contract’ or worded similarly. Such an
agreement is usually held to be no more than a mere “agreement to
agree” something further in the future. As such, the agreement
usually has no binding effect under normal established contractual
principles. (taken from the article you linked to)

The clause has no binding effect.

I would say its not very wise to use it. It complicates a contract and thus increases the risk of misunderstandings or loop holes for no benefit. As far as I know its not common. I have never heard of it before.

answered Apr 12 '12 at 20:34

Tom Squires
1,047 points