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Joshua
Joshua, Lawyer
Category: Law
Satisfied Customers: 26070
Experience:  LL.B (Hons), Higher Prof. Dip. Law & Practice
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We have an agreement to resell a companies goods and

Resolved Question:

we have an agreement to resell a companies goods and services. in an amendmant to the contract they reserved the right to renegotiate the agreement if we fell below an agreed revenue level. does this mean they can cancel the contract?
Submitted: 2 months ago.
Category: Law
Expert:  Joshua replied 2 months ago.

Hello and thank you for your question. I will be very pleased to assist you. I'm a practising lawyer in England with over 10 years experience.

Do you happen to have terms available?

Customer: replied 2 months ago.
a main contract and an addendum
Expert:  Joshua replied 2 months ago.

Thank you. The initial term of the agrement is 3 years and then extends automatically for 12 months periods unles terminated by 90 days notice before the end of any 12 month period.

The right you refer to in the addendum terms to renegotiate the contract does not confer a right to unilaterally cancel the agreement. The situations in which the parties can cancel the agreement are contained in clause 12 of the terms and conditions. It means the other party can ask to renegotiate the contract. I right to renegotiate is nothing more than a right to ask the other party to agree new terms but there is no right for terms to be imposed uon the other party.

If new terms cannot be agreed then either party has the right to terminate the contract under any of the conditions in condition 12.

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