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Continuing contract
A continuing contract is an agreement that creates ongoing obligations between the parties over an extended period, such as in the case of leases, employment or the provision of services.
A continuing contract is an agreement under which performance is not rendered in a single instance but extends over a definite or indefinite period. The parties undertake to perform repeatedly or continuously, such as by paying rent or providing services.
This type of contract is subject to different rules on termination, cancellation and damages than a one-off contract. In continuing contracts, the principles of reasonableness and fairness play a greater role in determining notice periods and any compensation for loss.
In practice, continuing contracts are commonly encountered in subscriptions, employment contracts and rental or lease agreements, where the parties’ mutual obligations are not discharged immediately but continue for the duration of the contract.
“The continuing contract for the provision of IT services could only be terminated subject to a notice period of three months.”
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