Terminating a commercial contract: have you given effective notice?

Terminating a commercial contract is an important step, which, if done incorrectly, can have serious adverse consequences such as liability for damages.

It is critical to consider the provisions of the contract as a whole to confirm that there is both a valid basis to terminate and that required procedures have been complied with.

For instance, many commercial contracts include requirements as to the timing, content and service of notices.

A recent decision of the Victorian Court of Appeal considered the principles relevant to giving of notices of termination and has demonstrated how non-compliance with the notice provisions of a contract can have adverse consequences.

Facts