Can You Exit An Indefinite Contract? An Update

Earlier this year we considered whether a commercial licence agreement that was expressed to continue “indefinitely”, but which gave termination rights only to the licensor, could nevertheless be terminated by the licensee on reasonable notice.

The point(Opens in a new tab) arose in the case of Zaha Hadid Ltd v The Zaha Hadid Foundation [2026] EWCA Civ 192(Opens in a new tab), a dispute between the Zaha Hadid Foundation, which owned the ZAHA HADID trade marks, and Zaha Hadid Limited, which paid royalties to use them. 

The Court of Appeal held that, in the absence of clear wording creating a truly perpetual arrangement, an agreement of indefinite duration did not irrevocably bind the parties forever and could be terminated on reasonable notice.