Two companies i.e. A and B entered into a Business Agreement of Manufacturing and SellingFans in the yaer 2009. Now, both A and B including other thrid party being C and D want to enter into a fresh Business Agreement. Can A and B terminate the earlier Business Agreement datted 2009 by mutual consent and enter into the fresh Business Agreement with C and D ? or is tehre any compulsion on the parties to follow the termination clause as mentioned in the previous Business Agreement dated 2009?
Whatever can be done by consent, can be UNDONE by consent as well. The Contract act allows the parties to replace the old contract with a new one. This is called novation of the contract. Other parties can also be added in the same as long as original parties agree. For more information - see : S.62 of the Indian Contract Act