Term Of The Agreement Clause
For example, some contracts, such as shareholder agreements, end when a shareholder ceases to hold shares in a company. “One problem on the standard form [the American Industrial Real Estate Association] is the start date. The parties should look beyond paragraph 1.3, which has a gap to be filled for the start date of the lease. Elsewhere in the lease agreement, paragraph 3.3, delay in possession, provides that if the lessor does not deliver the premises to the lessee by the original scheduled date, there is no fine, unless the lessor delays the delivery of the premises by 60 days. In this case, a tenant only has the option of terminating the lease. This section also provides that if the premises are not delivered within 120 days of the start date, the lease ends automatically. If [PART B] opts for an extension in accordance with paragraph [RENEWAL OPTIONS], the parties shall enter into a new franchise agreement under [PARTY A`s] franchise agreement in force for that purpose. And there is no limit to the number of ways to terminate a contract. They can also be terminated in different ways: similarly, certain obligations should be maintained even after the termination of the agreement, even according to the main purpose of the agreement.
This is addressed in the survival clause, which explains which obligations “survive” at the end of the agreement and how long. For example, it is customary that confidentiality obligations will survive the end of an agreement. This Agreement shall commence from signature and last two years and shall be automatically renewed for successive periods of one year, unless terminated in accordance with its terms. Initial deadline. This Agreement shall commence on [Date of Entry into Force / [DATE, MONTH]] and shall continue for [months] if it is not terminated earlier (the “Initial Term”). Options for extension. Subject to paragraph [RENEWAL AUTHORIZATION], [PART B] may, if [PART B] [PART A] notifies at least [EXTENSION PERIOD] [PART A] on working days, [PART B] may extend the granting of the [DELIVERABLE] by [PARTY A] of two additional conditions (each of a “renewal period”). . . . .