1 Department of Business Law, Aarhus School of Business, Aarhus BSS, Aarhus University2 Centre for International Business Law (CIBL), Aarhus School of Business, Aarhus BSS, Aarhus University3 Department of Law, Aarhus BSS, Aarhus University4 Department of Law, Aarhus BSS, Aarhus University
Some long-term contracts are brought to an end if one of the parties gives notice. Usually, such a step is not considered a breach of contract. It causes the contract to end in accordance with the contract. When no express rules cover the situation, it is often not entirely clear whether or not the contract can be terminated by giving notice. The international UNIDROIT principles and the Lando Commission have included a rule allowing the parties to a contract which is for an indefinite period to give notice, but it can be very difficult to distinguish between indefinite and definite periods. Furthermore, it is open to question whether the continuation of an expired contract is to be considered as a contract for an indefinite period, and whether contracts for definite periods are irrevocable. Even though these questions are not regulated, it is not recommended that new and more detailed principles should be developed. Each case must be considered on the basis of a thorough analysis of its specific contractual circumstances.
European Review of Contract Law, 2008, Vol 4, Issue 1, p. 15-30