No Holding-Over Period

Here’s what we find in the tail end of most agreements regarding the term or expiry:
“The Customer must notify the Supplier in writing no later than three months before the last day of the Term but no earlier than six months before that day. If the user does not give notice under this clause, the agreement will automatically extend for an extended term”

It’s sneaky, but worse is the fact that if you have a “Term-Reducing” or “Volume Based” Agreement, who really knows where the actual dates will fall as they could change constantly based on usage. Rather than go through every new invoice and calculate the dates for the notice period for termination, many customers simply cop this one on the chin. It’s unfortunate as successive “Extended Term’s” can run for a further 12 months each on particularly bad agreements.

At this point many customers change suppliers anyway, and the new supplier simply factors in the extra termination charges based on the old suppliers payout quote. What’s even worse, is when the current supplier uses the advantage of the fabricated payout, to make a new quote look more appealing compared to market options that have to include the exaggerated termination costs. We’ve seen enough to know that in most cases it only gets worse the next time around.