Continuous Performance Agreement

A continuing performance contract is an agreement whereby parties have committed to a continuous performance for a longer period of time. These can be contracts for a fixed term or for an indefinite period.

Cancellation

Termination of a permanent contract for an indefinite period is in principle permitted. Even when no cancellation option has been agreed. However, reasonableness and fairness may imply that notice must be taken before termination or that compensation must be paid by the terminating party.

Unilateral termination of a permanent contract for a definite period – in which no interim termination option is stipulated – is in principle not permitted.

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