Blog

posted on September 23rd, 2021 | in Uncategorized

If An Agreement Expires

Sometimes a contract that does not have an extension or renewal clause expires, while the contracting entities of the agreement continue to do business together in the same way. From a legal point of view, however, it is not possible to revive an expired contract – in the eyes of the law, a contract that expired once no longer exists. And exploitation under an expired contract can result in a significant infringement if it continues. But a cardinal rule in drafting is to avoid as much as possible relying on a court to interpret a word in a certain way. So even if, like me, you think termination is the best thing to do, it would be unwise to question that in a contract. In this regard, the provision questioned by the seminar participant — this agreement expires on 23 August 2007 — poses no problem, since there is no possible confusion as to its importance. And if, in this context, you use termination, it follows that if you indicate elsewhere in the same contract the consequences of termination, these consequences apply not only when the parties take steps to terminate the contract, but also when the contract expires. This practice note provides an overview of the expiry of the contract and the different causes of termination and the possibilities of performance of the contract, including their practical and legal consequences. It takes into account due dates, contractual termination rights (including ordinary termination events), termination for infringement (including repugnant breach), termination, void contracts, debt relief by agreement, frustration, force majeure, illegality, insolvency, discharge resulting from other subsequent events (such as merger, modification or death) and issues to be considered in connection with termination commercial-to-consumer contracts. But why doesn`t the use in the provision in question stop instead of end? Because it would not only be useless to do so, but it would also bother you to have to use heavier constructions elsewhere in the Treaty, for example.B. If the agreement expires or is terminated [or otherwise expires] instead of the date of expiry of the agreement.

(Note that use instead when this agreement terminates indicates that the stated consequences only apply if the parties terminate the agreement instead of letting it expire.) If both parties wish to continue under the same conditions as the expired contract, they can conclude a new contract of a new duration, which can then be shortened to make up for the delay between the old and the new contract. In order to avoid situations in which contracts expire, you can create agreements with an auto-renewal clause.. . .

Comments are closed.