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Simple English definitions for legal terms
continuing contract
Read a random definition: encumbrance
A quick definition of continuing contract:
A continuing contract is an agreement between two or more parties that creates obligations that can be enforced by law. It can be a written document or a verbal agreement. The term "contract" can refer to the agreement itself or the physical document that contains the agreement. A contract is a promise or set of promises that the law recognizes as a duty, and if it is broken, the law provides a remedy.
A more thorough explanation:
A continuing contract is a type of contract that is automatically renewed after its expiration date unless one of the parties involved decides to terminate it. It is a long-term agreement between two parties that is meant to last for an extended period of time.
For example, a teacher may have a continuing contract with a school district. This means that the teacher's contract is automatically renewed each year unless the school district decides to terminate it. This provides job security for the teacher and stability for the school district.
Another example of a continuing contract is a subscription service, such as a magazine or streaming service. The contract is automatically renewed each month or year unless the subscriber decides to cancel it. This provides convenience for the subscriber and a steady stream of revenue for the service provider.
In both examples, the continuing contract provides a sense of security and stability for both parties involved. It allows for long-term planning and reduces the need for constant renegotiation of terms.