2025S Business Law - Part I (BUS-3010-01) Course Materials & Test Answers | moodle31.upei.ca

Assume that your company, BELL, wants to enter into a contract with a regional cell service provider. Your company wants to ensure that the contract with the regional cell service provider is for a fixed term of 5 years, and cannot be terminated before that first 5-year term expires. Further, you want to ensure that after that first 5-year term the contract is renewable for additional 5-year terms unless terminated by one year's notice. BELL does not want the parties to have the ability to terminate the agreement after only one year. The termination clause should only apply to the 5-year renewal periods, not the first 5-year period. Which of the following clauses will correctly capture what BELL wants in the contract.

"This Agreement shall continue in force for a period of five years from the date it is made, and thereafter for successive five year terms unless and until terminated by one year's notice in writing by either party."

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This Agreement shall continue in force for a period of five years from the date it is made, and thereafter for successive five year terms, unless and until terminated by one year's notice in writing by either party."

"This Agreement shall continue in force for a period of five years from the date it is made and thereafter for successive five year terms, unless and until terminated by one year's notice in writing by either party."

"This Agreement shall continue in force for a period of five years from the date it is made and thereafter for successive five year terms unless and until terminated by one year's notice in writing by either party."

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2025S Business Law - Part I (BUS-3010-01)

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