The term is defined as “the end, the end.” The term “expiration” is also defined as the end or end; However, dictionaries also indicate that it is used in particular to designate the end of a period or period determined by law, contract or agreement. According to garner`s Dictionary of Modern Legal Usage, “expiration” is the preferred word in American law English, while “expiry” is the preferred word in British legal English. But a cardinal rule in drafting is to avoid as much as possible relying on a court to interpret a word in a certain way. So even if, like me, you think termination is the best thing to do, it would be unwise to question that in a contract. In this regard, the provision questioned by the seminar participant – this agreement ends on August 23, 2007 – no problem, since there is no possible confusion as to their importance. And if, in this context, you use termination, it follows that if you indicate elsewhere in the same contract the consequences of termination, these consequences apply not only when the parties take steps to terminate the contract, but also when the contract expires. Moreover, the use of the facility can be cancelled and terminated, since this agreement ends and expires with the cessation of commercial operation of the facility. Depending on the size of the termination you prefer, stopping and expiring result in either inconsistency or redundancy. Why the difference matters: A carefully crafted agreement may stipulate that a party`s rights deviate from their rights after termination. For example, one of my clients has a licensing agreement under which the client embeds pieces from a popular board game into jewelry. When the contract expires, the customer can sell the remaining inventory for the 60-day period following expiration.
On the other hand, if the contract is terminated by the licensor for infringement committed by the licensee, there is no acidification period. Many people (actually too many lawyers) are not aware of the difference between terminating an agreement and expiring an agreement. This contribution explains this difference and discusses why it is important. The expiration of a contract is the termination of a contract, in accordance with its terms, without any action on the part of a contracting party. Expiration is usually done at the end of a set period – for example, a lease agreement may expire at the end of a year. . . .