There is no provision that prohibits the early termination of employment contracts by mutual consent. This is possible not only in regular labour relationships but also in labour relationships between professional football players and clubs.
In the absence of any evidence of deception, the early termination of an employment agreement between a club and a player by mutual consent, preventing the fulfilment of a sell-on clause, cannot be considered a reprehensible behaviour of that club nor a violation of the good faith principle.
Facts/Procedure
On 24 November 2004, the Company X and Corinthians signed a 10-year agreement so called “Joint Venture Agreement for the exclusive management of the professional and amateur football department, licensing and other covenants” by means of which the licensing of Corinthians’ rights as well as the management of all its professional and amateur football departments were assigned to X.
On 17 December 2004, Boca and Corinthians concluded an “Assignment of Economic and Federative Rights Agreement” by virtue of which Boca transferred Corinthians the federative and economic rights of the Argentinean player C., for the amount of USD 16,000,000.
It was important to point out that Clause 7 of the Agreement contained a sell on clause...
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