Is a company bound to pay a 30 day termination fee if the contract was not renewed but services still received?
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Is a company bound to pay a 30 day termination fee if the contract was not renewed but services still received?
I had a service contract that stated termination by either party may be made given 30-days notice. The contract expired an oversight but services and payment continued. If the contract now terminates without 30 day notice, are they still bound to pay the termination fee for no notice?
Asked on June 9, 2012 under Business Law, Florida
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
If the contract has expired, then the 30-day notice provision would no longer be in effect, except *possibly* to the extent (if any) the terms of the contract specifically provide that the notice requirement survives expiration. Since the contract presumably does not say this--it would be nonsensical to require notice to terminate a contract which has already expired (and because it's nonsensical, a court might decline to enforce this term even if it was in the contract)--it is almost certainly the case that there are no grounds for requiring payment for termination without notice.
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