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Contract – Construction. The proceedings concerned the construction of an agreement for the provision by the defendant of catering services at the claimant's golf club premises, which the claimant sought to terminate. The defendant contended that the agreement provided for an initial term of three years, terminable thereafter by either party on four months' notice and the claimant contended that it was for a fixed term of three years, but terminable at any time by four months' notice within the initial three years. The judge decided the point against the defendant. The Court of Appeal, Civil Division, in allowing the defendant's appeal, held that it was of significance that, in the agreement, the parties had identified the initial term of three years as having been required in order for the agreement to have been reasonable.
Contract – Construction. The proceedings concerned the construction of an agreement for the provision by the defendant of catering services at the claimant's golf club premises, which the claimant sought to terminate. The defendant contended that the agreement provided for an initial term of three years, terminable thereafter by either party on four months' notice and the claimant contended that it was for a fixed term of three years, but terminable at any time by four months' notice within the initial three years. The judge decided the point against the defendant. The Court of Appeal, Civil Division, in allowing the defendant's appeal, held that it was of significance that, in the agreement, the parties had identified the initial term of three years as having been required in order for the agreement to have been reasonable.
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