Friday, September 23, 2011

How to terminate a contract that is silent on the issue of termination?

The contracts simply lists the parties involves, the nature of the services , the annual costs and the initial contract period.all done in a very simple way. We currently have 5 months left but are starting to experience difficulties paying.

with such a document, is there any known legal grounds under English law which would allow us to get out of it now?



No mention is made of the issue of early termination..



Your help will be greatly appreciated





ThanksHow to terminate a contract that is silent on the issue of termination?You simply wait five months.



\The contract has a term. It will expire at the end of the term. If there is no termination clause, that means terminating it early would be a breach.How to terminate a contract that is silent on the issue of termination?The contract will be for the Initial Contract Period, so you are tied into it for a further five months.



If you are in difficulties, talk to the other party to see if you can negotiate an early termination - they may settle for getting some money rather than your defaulting.How to terminate a contract that is silent on the issue of termination?A normal contract requires both parties to perform their part of the bargain. Any deviation or failure is a breach which could lead to the other side taking action. Occasionally a contract allows one or both sides to terminate it under certain conditions, which can be anything agreed by the parties. If a contract was for an ongoing service, but did not mention how it could be terminated then either there will be an implied term that it can be terminated on either side giving reasonable notice, or the whole agreement will be void for uncertainty. What is reasonable depends on all the circumstances.



But in your case you specifically mention an initial period, so you are clearly bound until that point. Does it mention renewal, or continuing after the initial period? If so, you terminate by making it clear you do not wish to renew. If there is no mention of renewal then the contract ends after the initial period. However, if you were to carry on then it would most likely be implied that you had agreed a new contract, probably on the same terms as the previous one.