VIC Contract Law - 90 Days Notice Period after Expiration of Contract?

[BuffaloBill]

I currently have a contract with a gym to work as a personal trainer that is due to expire. I have been told that even after the expiration of the contract, I still have to provide 90 days notice to discontinue paying rents to the gym. Is this correct given under Contract Law I would no longer have an agreement with them? The two clauses pertinent to this matter are as follows.

18.3 Notwithstanding anything else contained in this Agreement (except subject to clause 19), you commit to providing the Services for a minimum period of six (6) months from the Commencement Date (Commitment Period). Should you wish to terminate this Agreement during this Commitment Period, you must give MAJOR GYM the notice required by clause 23 and make full weekly rental payments for the remainder of the Commitment Period. Alternatively, you may transfer this Agreement pursuant to clause 21.

23.2 Subject to clause 18.3, you may terminate this Agreement at any time by giving ninety (90) days prior written notice to MAJOR GYM. You must continue to make your weekly rental payments to MAJOR GYM for the entire notice period. This right to terminate does not limit your other rights to terminate the contract outlined in this clause or otherwise at law.

I have been at MAJOR GYM for more than coming up to a year, and have been asked to renew my contract. I received an email stating that my contract was due to expire shortly (25.09.15) and that I would have to renew and pay the standard renewal fee.

Any help you can provide would be much appreciated.

 

[Sophea]

Its a little ambiguous, but if they are asking you to renew the contract then they must consider that it has been terminated or will terminate on a given date. Therefore in that case, even though it says "you may terminate this Agreement at any time by giving ninety (90) days prior written notice" - this sounds as though it is intended to mean any time within the period of the contract. You have no need of terminating if you are almost at the end of it anyway. So I guess the answer to your question is, based on the information you have provided (obviously I haven't read the whole contract and am not aware of full circumstances) it doesn't sound as though you need to give any notice, because you are not terminating the contract. The contract is naturally coming to termination shortly. That is unless there is something in the agreement that states that after a certain date the contract continues in force on same terms if no notice is provided. But if you have to renew your contract it doesn't sound as though that's the case.

 

[BuffaloBill]

Its a little ambiguous, but if they are asking you to renew the contract then they must consider that it has been terminated or will terminate on a given date. Therefore in that case, even though it says "you may terminate this Agreement at any time by giving ninety (90) days prior written notice" - this sounds as though it is intended to mean any time within the period of the contract. You have no need of terminating if you are almost at the end of it anyway. So I guess the answer to your question is, based on the information you have provided (obviously I haven't read the whole contract and am not aware of full circumstances) it doesn't sound as though you need to give any notice, because you are not terminating the contract. The contract is naturally coming to termination shortly. That is unless there is something in the agreement that states that after a certain date the contract continues in force on same terms if no notice is provided. But if you have to renew your contract it doesn't sound as though that's the case.

Hey Sophea, I received an email that had the following sentence
"Dear BUFFALOBILL, as you may be aware and in light of the recent audit is has come to our attention that your agreement with MAJOR GYM is due to expire (26th Sept 2015)."

I would assume this strengthens my case?

 

[Sophea]

Yes I suppose. As I said it doesn't seem to make sense that you would have to give notice of termination - when they have notice based on their own records that the agreement is about to expire. That is unless your agreement provides that after the expiry of the agreement, your agreement to rent will automatically continue on a month to month basis or something similar if no notice is provided. This is like in a lease when you sign a 12 month lease but afterward it goes to month to month lease agreement. You still have to provide notice before the 12 month lease expires, if you do not wish to continue on month to month basis afterward.

What are you trying to achieve? Do you want to get out of the agreement at its expiry?

I think you need to be up front with the gym and talk it out with them, see what they say and what they feel the agreement stipulates. Take notes of what they are saying and then go away - look at the contract and get second opinion if necessary to figure out whether what they are saying is consistent with what the agreement requires. Then if you disagree, draft a letter setting out your concerns and stating what you want.