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Discussion in 'Australian Consumer Law Forum' started by Gregg, 6 August 2014.
Is the statement under
contract law "This agreement can not be cancelled by the client" enforceable?
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?
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.