Agreement Notice Provision

By september 10, 2021Geen categorie

Termination provisions are very often treated as an idea a posteriori, but they need to be reviewed regularly. The purpose of a termination provision is to reduce the number of potential disputes by clearly defining what a legally binding communication is. Remember that termination not provided for in the contract may give the paying party the opportunity to contest the termination. This can prevent an otherwise valid claim from being successful. The provisions relating to the contract notice determine how a party may draw the attention of another party to matters that must be brought to their attention by “termination” under the contract. Just because a contractor is aware of a termination does not mean that it has been properly served as part of a contract. The difference between the two can make the difference. The parties generally provide for contract renewal conditions for additional or successive conditions. Sometimes the terms automatically lengthen, unless one party sends a termination to the other before an agreed date. You may also agree that the contract terminates automatically, unless a party provides a valid renewal notice on an agreed date. A termination provision is an agreement between the parties on how to obtain communications relating to contractual matters and how it should be very clear about its requirements.3 min read There is an essential difference between “must deliver” and “can provide”.

The first is mandatory, the second form is permissive. It will be open to say that “may provide” means that the list of methods of distribution of notifications is not exclusive, while the form “must be used”. Daniel A. Batterman gives some practical advice: “Make sure this provision is designed to warn you. For example, more and more companies want to notify by email. I tend to object to it, unless my client really wants to…