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NSW Contract with Vague End Date and Unfair Termination Clause?

Discussion in 'Other/General Law Forum' started by James1234, 1 December 2014.

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  1. James1234

    James1234 Member

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    I am currently in a contract that has as the length of the contract '6 months then on a month to month basis'. I am almost at 6 months and want to end the contract. If I finish the contract at 6 months will the termination clauses still apply?

    In the termination clause, if I terminate the contract, I lose all my clients who I have gotten myself while under contract. If I lose my clients, I will lose all my income and end up forfeiting a prior contract that I have with another company to use their premises. That is a 12 month contract. I feel that the contract is set up to trap me into continuing to work with him as if I leave, my business will go under for sure. Does this make the contract void under contract law as it is not possible for me to fulfil it?

    Kind regards.
     
  2. Victoria S

    Victoria S Well-Known Member

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  3. James1234

    James1234 Member

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    Hi Victoria s,

    It is more of a sub contractor contract.

    Thanks for any advice you have.
     
  4. DennisD

    DennisD Well-Known Member

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    Hi James1234


    Termination clauses sometimes only apply during the initial period of a contract. Read your contract carefully


    For example, does the termination clause commence 'If, during the Term, ...' and perhaps 'Term' is defined elsewhere to be the initial period of six months


    Obviously you will need to read your contract carefully and in full to have a proper understanding of how it works, however this is a start to get you thinking
     
  5. Sophea

    Sophea Well-Known Member

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    Hi James,

    I obviously haven't read this contract and you would need to check by reading it carefully, but I would assume that the 6 month period is the minimum and once you are into the month to month period you can terminate at any time by giving a set time period of notice. Would it be a possibility of sticking it out with this contractor for say the 12 months so that you can fulfil your lease agreement for the premises and then just go out on your own and start the business again?

    Is there a restraint of trade clause in the contract that states that if you leave the business you are unable to take your clients with you or operate within a certain geographical area or for a certain period of time after the contract ends in your current business?
     

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