It is a common practice in intermediary contracts that early unilateral termination of the contract is subject to payment of a contractual penalty (liquidated damages) by the party who nevertheless terminated it.
The recent jurisprudence of Russian Football Union (FUR) jurisdictional bodies raised two crucial issues:
- Can the party (the player in casu) terminate an intermediary contract early and unilaterally without payment of liquidated damages notwithstanding a respective provision in the contract?
- If yes, are there any other remedies available for the intermediary?
As a starting point, Article 10 par. 3 of the FUR Regulations on Working with Intermediaries (FUR Intermediary Regulations) provides:
“Unilateral refusal to execute the contract concluded with the Intermediary without payment of compensation is allowed in cases where the essential terms of the contract have been a breach...
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