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VIJAYNARAYAN (FREELANCE EDU CONSULTANT)     22 July 2010

RIGHTS ON TERMINATION WITHOUT NOTICE

RIGHTS ON TERMINATION WITHOUT NOTICE OF CONTRACT

Company A & B have entered into contract. B is the service provider & A is the buyer. The contract has 30 days notice for Termination - by either party. Now A has terminated ( immeadiately ) without the notice period of 30 days - on verbal instruction to party B.

 B has notified A - in writing saying - B has the right to terminate but however the 30 days period will start from the day of stoppage of inputs & also B has staked a claim for the avg billing amount of the last 3 months. 

I welcome discussion  on the rghts of party B in this situation



Learning

 6 Replies

V. VASUDEVAN (LEGAL COUNSEL)     22 July 2010

This is a crucial topic on contract and requires ascertainment of each party's rights and obligations - particularly termination clause. Also the precise reason for termination without notice. There could be certain material default clause dealing with the rights and obligations when the Service Provider fails to perform certain obligation, inherent quality deviation or any policy violations etc>!  would appreciate more details for a clear perspective!

VASUDEVAN

VIJAYNARAYAN (FREELANCE EDU CONSULTANT)     22 July 2010

Dear Mr. Vasudevan

Thanks for the response.

In this case there is / was no material violation of contract obligations from B since all work till date of verbal instructions not to carry on further has been accepted by A. Contarct clearly states that caontract can be terminated immeadiatly only on breach of contract terms and that also has to be notified to B in writing.

The actual reason in this case is that A found another party at lower rates!

Bhabani Prasad Pujary (Asst.manager)     08 August 2010

Agreement is nothing but terms as fixed by both the parties, if  any of the party vilated the term then the other party has a right to go for arbitration if arbitration clause is there or can file a suit for specific performance of the contract under specific relief clause.In this case B certainly knock the door of Law to get an injunction against A.

sanchit (student)     05 November 2011

SUPPOSE IN CONTRACT IT IS MENTIONED THAT CONTRACT CAN BE TERMINATED ANYTIME WITHOUT NOTICE OR COMPENSATION , THEN WHEN YOU GET REMOVED AFTER FEW TIME OF SERVICE, CAN YOU SUE BASED UPON THIS CLAUSE?

umair (ASSISTANT MANAGER)     04 January 2012

am in need of first year LLB notes. I request friends on this newtwork to contact me who can donate me the books

(Guest)

Verbal instruction is not valid if contract is in writing. However, a wise course of action on the part of B.


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