Extending The Term Of An Agreement

The termination of the contract seems to be a simple proposition. As a general rule, a contract expires or may be terminated by the parties with or without reason. Often, there is a provision that allows for renewal. Although the process is often simple, sensitive issues can arise when the contract has provisions that survive termination. The recent Tennessee Supreme Court decision in BSG, LLC v. Check Velocity, Inc., 2012 Tenn, demonstrated the importance of a clear understanding of the difference between contract renewal and contract renewal. LEXIS 822, 8-9 (Tenn. November 20, 2012). 1. Overview A good start in a working relationship and a positive first impression when re-hiring is essential for the creation of productive, successful and professional employment. The creation of an employment contract is an important part of this process.

There are many advantages to having a well-developed employment contract, the legal protection it affords to a company or business is the most obvious. If, at the expiry of the contract, the parties continue to perform certain aspects of the contract or do not fulfill all the additional aspects, an amendment agreement to extend the expiry period may not be the most appropriate solution, as it may not accurately cover the rights and obligations of the parties to the tacit contract. In these circumstances, the parties should consider entering into a new stand-alone agreement. If, at the expiry of the contract, the parties continue to fulfill their respective contractual obligations without a renewal agreement, it is likely that there will be a tacit agreement between the parties under the expired contract. In order to avoid any uncertainty as to the terms of such a tacit contract, the parties should cease all action under the contract after the expiry of the term, until a renewal or new formal contact has been agreed or, at the very least, give priority to the approval of an extension of the term, including after the expiry of the contract. The Court finally considered the extension provision of the BSG/CheckVelcity contract and concluded that the parties used the term “renewal” in the sense of an extension of the contract for an additional period, with the same conditions and obligations as a previous contract.