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I have attached the contract in question - Schedule A 8 details the notice period. Our client is saying they are not liable to pay the full cost of the renewal for 12 months and are only willing to pay us 4 months.
The cost for the renewal of the support, maintenance and data hosting contract is £20,000. This may sound like a lot but the client purchased an 'Enterprise' licence of our software which enabled them to give access to an unlimited number of their staff.
The contract is clear.
They must terminate 90 prior to renewal.
If they did not give you the required period of 90 days then you can in theory charge for the 12 months plus the remaining period.
The contract contains all the terms to which you and they agreed to
If they have failed to give you the required notice period of 90 days then the contract renews for another year
Can I clarify anything for you about this today please?
Thanks Alex, that's great. Can I just ask, should I refer the client to Section 15 - Maintenance and support services?
Yes I would certainly do that. They are in breach of contract
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