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SA Contract Law - Statement Enforceable?

Discussion in 'Australian Consumer Law Forum' started by Gregg, 6 August 2014.

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  1. Gregg

    Gregg Member

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

    Rod Well-Known Member

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

    Gregg Member

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    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?
     
  4. DennisD

    DennisD Well-Known Member

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    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.
     
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