As a professional, I would like to shed some light on the term “agreement tacitly renewed.” This term is commonly used in legal circles, but it can be confusing for those who are not familiar with its meaning. In this article, I will explain what agreement tacitly renewed means, how it works, and what it entails.
What is Agreement Tacitly Renewed?
Agreement tacitly renewed refers to an agreement or contract that has been automatically renewed without the need for explicit agreement or renewal. It is a renewal that happens by default, in the absence of any objections or notifications from either party.
How Does It Work?
When an agreement or contract is about to expire, it is common for parties to either renew it or terminate it. In the case of tacit renewal, neither party takes any action, and the agreement is extended automatically. This means that all the terms and conditions of the original agreement continue to apply, and both parties are bound by them.
For instance, imagine that you have a contract with a customer that expires on December 31st. If neither you nor the customer give any notice of termination, the contract will be tacitly renewed on January 1st, and you will continue to provide your services under the same terms and conditions as before.
What Does It Entail?
When an agreement is tacitly renewed, both parties are bound by the terms and conditions of the original contract. This means that if there were any changes in the law, market conditions, or any other circumstances, these will not be reflected in the renewed agreement unless they were explicitly mentioned in the original contract.
Moreover, tacit renewal can lead to misunderstandings or disputes if either party assumed that the agreement would not be renewed or if one party wanted to make changes to the contract. For these reasons, it is always advisable to have clear communication with the other party and to explicitly agree on the continuation or termination of the agreement.
Conclusion
Agreement tacitly renewed is a legal term that refers to an automatic renewal of an agreement without the need for explicit agreement or renewal. It can be confusing and lead to misunderstandings or disputes if each party does not communicate clearly, or if one party wants to make changes to the contract. Therefore, it is always best to have a clear understanding and communication with the other party before the contract expires.