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This meant that not only were the terms of the expired contract deemed to continue, but the contract was held to run for another full year fixed term.

This could be concerning for services providers where a fixed term contract for a single year might not contain any price review or price escalation provisions.

A few examples from the cases help to illustrate differing results. (L) 362, an appointment that had been expressed to be for one year only, and then to be at the option of the shareholders, ran on without interruption for 15 months before a notice of termination was issued.

Example 1: tacit consent and terms locked in In Bullock v The Wimmera Fellmongery and Woolscouring Co Ltd (1879) 5 V. The court held that there was "tacit consent" on both sides to a continuance of the engagement.

Sometimes a group of companies which has reorganised itself will want to backdate some of those changes, perhaps to backdate an intra-group transfer of business so that it coincides with the previous year end.

In this kind of situation, the following general approach should be considered: – the relevant arrangements can be documented in the appropriate form, such as a loan agreement or business transfer agreement.The laws of the State of New York are most frequently chosen and New York law has provisions that encourage parties to select it even when neither the parties nor the contract has any connection to New York.Similarly, most “UK law” contracts for international deals will, in fact, be governed by the laws of England and Wales (or, less often, the laws of Scotland or N. Since the Rome II European Union Regulation regarding conflict of laws, parties selecting English contract law can also choose English law as the law governing non-contractual obligations.Sometimes, however, a contract may expire without the parties realising and without any express statements made as to what will govern future dealings between the parties.If they continue to perform the subject matter of an expired contract there are three possible legal outcomes: It is the conduct of the parties (judged objectively and with an eye to how consistent it is with the terms of the old contract) that is the key to establishing which of these three will be the outcome.




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