SA Contract Law - Statement Enforceable?

[Gregg]

Is the statement under contract law "This agreement can not be cancelled by the client" enforceable?

 

[Rod]

At face value - no. However penalties may be sought against the client if they do cancel. Tread carefully.

 

[Gregg]

At face value - no. However penalties may be sought against the client if they do cancel. Tread carefully.

Thanks for your reply, on the contract/agreement it only has that one sentence.
There is no mention of penalties.
What act says that it is not enforceable?

 

[DennisD]

Hi Gregg

The clause as drafted ("This agreement can not be cancelled by the client") seems rather odd for at least a couple of reasons.

First, an onerous termination clause might limit in what circumstances one or the other party can terminate a contract, prescribe precise procedures for doing so (including notice periods), and include compensation for cancellation/termination. But the clause as drafted seeks to go beyond that, to actually prohibit cancellation.

Second, in common law there is a right to terminate for a repudiatory breach by the other party. This right cannot be written out of a contract.

As Rod says, tread carefully, and be sure to read your contract in full before you decide upon any action.