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Contracts

Q: Withdrawal from contract due to disability

Can a company withdraw from a contract for the mere fact, which was disclosed at application, of my being disabled and therefore in receipt of benefits, or does this now constitute breach of the contract?

A: In response to a question framed as widely as this, without any clue as to the type of contract concerned or the nature of the disability, I can only give you some general principles as a guideline.

The disability legislation covers discrimination in relation to a variety of matters such as employment (actual or potential), contract workers and trade organisations, provision of goods and services to members of the public, provision of education for the disabled and public transport use. So far as employment is concerned, there is exemption for small businesses and certain bodies such as the police, fire fighters and the armed services.

Unlawful discrimination by an employer will be established if the employer treats the employee or contract worker less favourably for a reason relating to the disability than he would treat others to whom that reason does not or would not apply, or if he puts the disabled person at a disadvantage and cannot show that the treatment in question is justified. It seems from your question that there was a concluded contract of some kind, in which case no contract can be cancelled unilaterally except in special circumstances, such as if it was induced by misrepresentation, mistake, duress or undue influence.

It will be a defence to an allegation of discrimination if the discrimination concerned is justified. The onus of establishing justification is on the perpetrator. To take an extreme example, if a blind person were so ill advised as to apply for a job as a security guard, he should not be surprised if the potential employer's refusal of his application because of his disability is held by a court to be justified. There are obviously some jobs which particular types of disability render inherently unsuitable and each case will depend on its particular facts.

To be unlawful, the reason for the discrimination - in your case 'withdrawal' from the 'contract' - must relate to the disability and knowledge of that disability is a necessary prerequisite of any discrimination. You say that you disclosed your disability at application, so there may be no argument on that score. However, there could be an issue as to misrepresentation if, though disclosing your disability, you made light of it and falsely suggested it would not affect your ability to carry out your contractual obligations when in fact the contrary is the case.

There are codes of practice relating to different aspects of disability discrimination and there is a Disability Rights Commission which has a statutory duty to promote equal opportunities for disabled persons and to encourage good practice and keep the efficacy of the legislation under review.

Enforcement in some instances is by proceedings before an employment tribunal and in other instances by litigation in the County Court, depending on the subject matter and nature of the discrimination.

First published October 2002