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NSW Contract Law - Extension of Contract?

Discussion in 'Commercial Law Forum' started by CrispyOz, 11 April 2016.

  1. CrispyOz

    CrispyOz Member

    11 April 2016
    Likes Received:
    I have a business and a few years ago we signed a contract with one of our service providers for a term of 2 years. A clause of that contract allows either party to extend the contract by notification in writing to the other party. We missed this clause originally but now the other party is seeking to use this clause to force us to continue their engagement beyond the initial term. We do not wish to continue their engagement but would prefer to engage another service provider.

    Rather than get hung up on the specific wording of the clause, in principle, is it possible under contract law for one party to rely upon a term of a contract to extend that contract against the will of the second party?

    I have 2 thoughts on this matter.

    1) We did sign the contract and the contract included this clause.
    2) A contract can only be binding if both parties are in agreement, so this being the basic principal of a contract that the clause would not be enforceable.
  2. Sophea

    Sophea Well-Known Member

    16 April 2014
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    Is there a termination clause in the contract?
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