Can you end a business contract if there is no termination clause?

It has been well established in the Courts that if a contract does not state its duration or explain how to deal with termination then it can be terminated by either party by giving reasonable notice.

That’s all very well, but it leaves somewhat tricky question of what constitutes reasonable notice?

What constitutes reasonable notice?

Every case that has come before the Courts has been decided according to the individual facts of the contract in question. The decision makers have looked at such factors as:

  • What is ‘normal’ in that particular industry?
  • What is the business cycle for the provision of services under the contract?
  • What were the parties’ expectations at the time of the contract being entered into?

There is no fail safe answer, but it helps to know that there can be a way out.

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