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V.RAJESHWAR (Advocate)     08 February 2012

How to revive a contract after termination

If one of the parties to a contract defaults and the other party terminates the contract, can the same contract be revived by withdrawing/recalling the notice of termination if both the paties agree to do so.

There is a contract between X company and Y contractor. Y contractor has  failed to complete the work within the time as such the X company after giving notice , terminated the contract. After receiving the termination letter, Y contractor approached the X company  requesting to revive the contract. X company is also willing to give a chance. 

Does the act of withdrawing the notice of termination revive the old contract? Or a fresh offer and acceptance is needed for the same purpose?



Learning

 11 Replies

Adv.R.P.Chugh (Advocate/Legal Consultant (rpchughadvocatesupremecourt@hotmail.com))     08 February 2012

Depends on the actual terms. If in the present case time was not of the essence of the contract, it could not have been terminated in the first place, hence no need for resurrecting it

adv. rajeev ( rajoo ) (practicing advocate)     08 February 2012

It depends on both. If both If both are agreed then no problem to revive the contract  by withdrawing the notice.

Vakeel Civil Court (Director)     08 February 2012

Why revive. Simply enter into new contract. In case you need the previous contract record the fact of earlier contract may be mentioned in the new contract.

akash kapoor (*************)     09 February 2012

A CONTRACT ONCE REPUDIATED IN CASE OF BREACH CANNOT BE BROUGHT BACK TO LIFE, IN SUCH CASE THERE CAN BE ONLY A NEW CONTRACT. BECUASE AS PER CONTRACT ACT THE CONTRACT COMES TO AN END AS AND WHEN THE PARTY REPUDIATES IT.

Ajay Kumar (Administration)     20 February 2012

It can be revived by issuing a withdrawal letter. The Contractor will have to give his acceptance again to abide by the terms and conditions and scope of work.


(Guest)

Better take a route of arbitration and agree on the mutual terms through arbitration process.

Uday chandorikar (Constrction engineer)     22 October 2012

A contract was terminated as per the provisions of the contract. Thereafter the contract was revived with additional security deposit.

Whether the revived contract can be considered with same terms and conditions of the contract if no such mention is made in the contract revival order ?


(Guest)

Dear Uday,

 

Terms & conditions of a terminated contract cannot be evoked unless specifically mentioned so in the revised agreement.

P. K. AWASTHI (Head-Legal)     22 March 2016

By mutaul consent of parties, notice of termination can be withdrawn, subject to recording reasons for the same. There is no legal hurdel in this.  

Ms.Usha Kapoor (CEO)     01 October 2016

Dear Client,

                 Once terminated contract can't be revived,. Anew contract by novation will've to be entered into by the partiese with fresh T& Cs although of old contract.

contract once terminated can be revived at the option of one of parties?
 
Learned senior counsel further submitted that the
respondents terminated the contract on 15.12.1977, that is,
within two month. The question of waiver of a condition would
not at all arise so as to revive the contractual obligations into

existence and thereby claim his contractual rights under the
contract so revived. It is settled position of law that once a
contract has been terminated, either on the breach of the
terms of the contract by one party and subsequent repudiation
by the other or by frustration of the contract due to
circumstances beyond the control of either of the parties, the
contract legally comes to an end between the parties. Then
there is no question of any contract/agreement subsisting
between the parties, what follows is only the legal
consequences which may have been contemplated in the terms
of the contract e.g. liquidated damages, etc. However, the
parties are at liberty to mutually novate the contract by
bringing into existence a new contract altogether which would
replace the old contract between the parties and the terms of
the new contract take the place of the old contractual terms.
It will not only be illogical but also absurd to contend that
once the contract has been terminated by a party, it will still
subsist in the background and either of the parties may be
able to waive a condition attached to that contract so as to
revive that contract from a period of slumber. This will in fact

amount to saying that even though a contract has been
terminated by putting it to an end but it is actually still
available, at the option of one of the parties, to be revived back
to its original form and content through unilateral waiver of a
contractual condition.If you appreciate this answer please click the thank you button on this forum.

Law Aspire (Legal)     03 February 2017

If this will be allowed , then there will also be loss of revenue to Government authorities in terms of Stamp and registration Duty on Contracts.

I totally Agree with Ms. Usha Kapoor Madam.

 

I woul like to know the views on Renewal of Contract on Expiry of  term for which they are executed .

Will that be called a new Contract or just revival?

 


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