STSTUS & RIGHTS AFTER EXPIRY OF CONTRACT

Ok.

The contract expired on 31-03-2010 so it became void as on 01-04-2010.

But the services under the contract continued upto 15-05-2010 though agreed upon verbally.

This arrangement will be taken as mutual consent. The contract does not come into picture here.

The 60 Days notice is no longer applicable as the contract has become void.

However, Company-A has to pay all service charges to Company-B either as per the contract rates or as agreed upon mutually.

The general rule of law of contract is that ones the contract is expired it becomes void an has no effect in the eyes of law so giving of notice of 60 days for expiration of contract is no longer required as the contract is already expired on 31-3-2010 .

But company-A has to pay for the services given by company-B as it is agreed by both the companies verbally on the phone.

A contract need not always be in writing. Even if the written contract has expired, each individual service rendered & accepted constitute separate & individual contracts. Terms & conditions may be assessed from each transaction. Continuity is not necessary. The clause relating to the 60 days' notice does not apply. The services     being non-gratuitous in nature, has to be paid for.

1. Yes, the verbal offer and acceptance followed by acting upon the same has given rise to new agreement and it should not be treated as extension of the previous one if there is no renewal clause in the previous agreement.

2. Since this is not the renewal or extension of the previous agreement the 60 days notice period-as contanined in the previous agreement is not binding.

3.The companies  defintely have got legal rights against each other.

Dear All

Thanks for the discussion thread. This has really helped to conclude that 1. contract is void 2. services rendered after the - voidness - has to be paid anyway 3. and that the extended services can be terminated at any time as per convinence