However, where a contract contains a sunset clause, it is customary for both parties to have the right to extend the effective term if they so wish. If you want to use a condition to end the effective term, you should clearly describe that condition in the sunset clause. You can also set this condition in a separate appendix. If you want to set a period or duration during which an agreement takes effect, you must use a sunset clause. In addition to defining the duration of the contract, these clauses also describe the circumstances of an early termination of the validity period. The expiry clause defines the period during which the contract is effective, subject to prior termination, in accordance with its conditions. Not all agreements have a defined duration (e.g.B. purchase and sale contracts). But many of those who do also give one or two parties the right to extend the agreement with one or more additional terms…
