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JBaxLaw, Attorney
Category: Business Law
Satisfied Customers: 11396
Experience:  Experienced in business formation and licensing issues
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If I am in a contract that ends June 30, 2012, can the company

Customer Question

If I am in a contract that ends June 30, 2012, can the company I'm in the contract with allow it to expire without notice if there is a termination clause that states that they have to provide written notice of termination
Submitted: 5 years ago.
Category: Business Law
Expert:  JBaxLaw replied 5 years ago.


I will be assisting you with your question. A contract normally requires no notice of termination when it expires naturally at the end of the contract term. The exception is for contracts which automatically renew. Some of those contracts require notice of either party should they intend not to renew. If notice is not provided then renewal occurs automatically.


The standard situation of a contract term ending requires no notice to terminate. This is because the contract has concluded at there is nothing to terminate at the end of the contract term. Termination clauses normally refer to a situation where the parties want to terminate before the end of the stated contract term.


Customer: replied 5 years ago.
Does it matter that the termination clause states that they don't have to have a reason they just have to give ninety days notice to terminate. Sounds like it's a lack of consideration than a legal situation.
Expert:  JBaxLaw replied 5 years ago.

A termination clause can be for no cause with only a 90 day notice, but that does not impact the end of a contract term or create any notice obligation prior to the end of the term. You are right that there is a difference between business ethics and the law. Often something maybe ethically questionable, but not a breach of contract.


Customer: replied 5 years ago.
Gave positive feedback. Thanks
Expert:  JBaxLaw replied 5 years ago.

Yes, you should be prompted to leave feedback after accepting the answer.


Thank you again

Expert:  JBaxLaw replied 5 years ago.
Please let me know if you need any other assistance. Thank you for accepting my answer and ensuring that I receive credit for assisting you.
Thank you again

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