We have an expired written contract that expired in June of this year. The expired contract contained rebates for performance. The parties are interested in signing a new contract but the supplier is insisting on making the contract retroactive to include the rebates they would have been entitled to should the contract not have been allowed to expire. The period of performance was crystal clear and it did not contain any automatic renewals (evergreen language). My position is that this is not lawful based on the basic requirements of a contract.
1 Answer from Attorneys
If there is no contract in place at this time the parties are free to bargain for whatever terms they choose. There is nothing inherently illegal about negotiating for contract terms to be retroactive or to insist on rebates based on past events as a term of a new contract. It may or may not be a bad faith negotiation to demand retroactive benefits of a contract they let expire, but that’s not illegal. You are free to walk away from the deal and decline a new contract if you don’t like their terms.
Related Questions & Answers
If I'm a business owner, can I make (aka borrow) multiple microloans ($5k or less)... Asked 12/07/21, 11:14 pm in United States California Business Law
I want to make an agreement between my store and the other store. We are Xoliz LLC -... Asked 11/29/21, 11:08 pm in United States California Business Law
Sold an excavator "as is" ...payment was 3k 9/1/21....remaining 3k due on... Asked 11/26/21, 4:59 pm in United States California Business Law
Is a contract not specifically provided in the civil code considered invalid? Asked 11/19/21, 8:38 pm in United States California Business Law
I heard I can use a declaration to schedule/request a mandatory settlement... Asked 11/17/21, 10:47 pm in United States California Business Law