Can You Extend An Agreement That Has Expired



-September 13, 2021-

Can You Extend An Agreement That Has Expired

Mike Burroughs

Finally, certain types of contracts are subject to additional amendment procedures imposed by law. A perfect example in England is that of public procurement subject to the 2015 Public Contract Rules (RCPs). Under English law, in order to effectively extend the duration of a public contract without the need for a new tendering procedure, the parties must demonstrate that the grounds justifying such an extension fall within one of the categories described in Regulation 72 of the RCP. To avoid possible disputes, it is always preferable to explicitly extend or vary a contract before it expires, in order to avoid any uncertainty as to the future nature of the relationship between the parties. Under English law, a change in the terms of the contract must be supported by a counterparty, unless a document is performed as an instrument. Where the document modifying the term of the contract is performed as a simple contract, the additional payment made by Party A constitutes valid consideration for the increased obligations of Part B that were performed during the period of renewal of the contract. Alternatively, if an extension of the term does not involve additional payment, the parties may consider entering into an act of modification or an agreement with a nominal consideration in order to avoid future disputes regarding the validity of the consideration granted. When it comes to contractual risks, it is important to consider the language used for any changes made by an agency. If the agreement does not contain the correct language, the company mandated by the Agency could subsequently assert that the initial contractual conditions are null and void because the contract has expired. The language contained in any treaty amendment must take account of the fact that the original contract has expired due to maladministration.

It is the behaviour of the parties (objectively assessed and given the consistency with the terms of the old contract) that is the key to determining which of these three will be the result. A few examples of the cases help illustrate different results. Due to the lack of Australian case law, the Australian courts have requested American, Canadian and English case law. In a recent case in English, it was found that a telephone conversation between the parties and a follow-up e-mail were sufficient to establish that the terms of the original (expired) agreement applied to any additional service, although the following e-mail did not elicit any comment or rejection by the other party, thus demonstrating the relative ease with which a contract expired by conduct and it was possible to do so. When amending the renewal agreement, it is important to follow the correct amendment procedure provided for in the terms of the Treaty. If the correct procedure is not followed, the parties may not be applicable. Create an email culture, because careless words can lead to an outcome that no one expected or wanted. Ensure that all correspondence is carefully checked and, if necessary, sufficiently conditioned, so that the communication can be limited without prejudice or in its contractual force, in order to avoid that new implied contracts are concluded if this is not desired.. . . .


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