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reasonable notice to terminate in contract law

  • 15-12-2015 7:42pm
    #1
    Registered Users, Registered Users 2 Posts: 659 ✭✭✭


    In the absence of any termination clause in a contract. Is there an implied term that reasonable notice be given to terminate the contract.

    I understand it is an implied term in employment law but I'm wondering about other contracts, i.e. supply of goods and services

    Thanks Wazzo


Comments

  • Registered Users, Registered Users 2 Posts: 78,580 ✭✭✭✭Victor


    I think custom and practice would be important, together with how adversely the other party is affected.

    Your (non-custom) stationery supplier saying they are closing their shop for a month and won't be able to supply wouldn't really be a problem, as you can buy most such products anywhere.

    Your architect doing the same thing a month before you were due to finish your building would be another matter. They client would be fundamentally compromised. That said, the main architectural organisations have standards contracts, which might be considered binding, which would consider such matters.

    Similarly, if the battery supplier for your heart pacemaker said they weren't supply them anymore on short notice would be an issue.

    I think the courts would be reluctant to say there is a contract in perpetuity, unless such a contract was contemplated, e.g. a pension or a graveyard.

    Similarly, I think the courts would be reluctant to say that a certain price would last in perpetuity.


  • Banned (with Prison Access) Posts: 4,691 ✭✭✭4ensic15


    In a contract for goods each order is an individual contract. Failure to complete by either side is a breach of contract. A party to a contract can't just decide they want out. The contract must provide a means of termination or else it is complete.


  • Registered Users, Registered Users 2 Posts: 78,580 ✭✭✭✭Victor


    4ensic15 wrote: »
    In a contract for goods each order is an individual contract.
    That may be very context dependent, e.g. there may be a framework contract in place "the price for widgets is €5 until the end of 2016".


  • Banned (with Prison Access) Posts: 4,691 ✭✭✭4ensic15


    Victor wrote: »
    That may be very context dependent, e.g. there may be a framework contract in place "the price for widgets is €5 until the end of 2016".

    Each order is an individual contract for widgets at that price. If there is a contract to supply widgets as and when required until 2016 the vendor can't terminate and refuse to supply until then.


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