Community Law

Bizar Male

Legal Matters – John C. Goede

Q:  We just had an election and discovered that the prior president signed a long-term contract with a vendor that locks us into the agreement for almost five years. The contract appears almost impossible to terminate. Is this legal and can we terminate now that the new board was elected?

C.H., Naples

A:  We would need to know more about the specific facts to fully answer the questions, but the answer is most likely that the agreement is legally enforceable, and the election of the new board would not permit the existing directors to terminate the agreement.

Many of our clients are under the mistaken belief that any contract can be terminated with or without cause by giving 30 days written notice.  Unfortunately, this is not a default rule and most contracts may not be terminated without cause unless the contract specifically says so.  The general rule is actually the opposite, which is that you can’t terminate a contract unless one side breaches a material term of the contract. As a result, if the contract has a term of five years and provides that it can only be terminated by the association after breach by the vendor, this is a legally enforceable agreement. 

Next Post

FDLE investigates whether Manatee commissioners broke Sunshine Law

Bradenton Four Manatee County commissioners are subjects of an investigation by the Florida Department of Law Enforcement into whether they broke Florida’s public record law leading up to their first attempt to fire former county administrator Cheri Coryea. Some commissioners have already been questioned as part of the FDLE’s “fact-finding” […]