Ending A Contract By Agreement
This provision is widespread and appears in many trade agreements. In 2018, the Corporations Act 2001 (Cth) introduced a new rule preventing the termination of a contract in the event of certain insolvency events. This ensures that insolvent companies can continue to act while trying to recover from insolvency. Some contracts may be excluded from the application of the rule. When a contractual term is deemed „unfair“, it is non-binding. Unfair contract terms apply only to contracts concluded with small businesses. A contract is a small business contract if the ex ante price to be paid does not exceed: therefore, if both parties have performance obligations (i.e. performance consideration) of a contract, an agreement to discharge each other from the subsequent performance will usually be a new consideration.