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$2million reasons why the wording of legal agreements is important…

A company negotiated what it thought was a five year deal which said the agreement, “shall continue in force for a period of five years from the date it was made, and thereafter for successive five year terms, unless and until terminated by one year prior notice in writing by either party”.

The company thought they had a deal for at least five years and after that a one year notice period.  Unfortunately, the placing of a comma after, “for successive five year terms,” meant that the notice period of one year could be given immediately.  The supplier gave notice and upped their prices by over $2m and the company could not hold them to the originally- negotiated price.

If you are negotiating an agreement it pays to get legal advice and assistance.  If you need help give me a call on (04) 473 6850.