Sec. 677. Contract For Fixed Period Greater Than The Year, But Terminable Within The Year
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This section is from the book "The Law Of Contracts", by William Herbert Page. Also available from Amazon: Commercial Contracts: A Practical Guide to Deals, Contracts, Agreements and Promises.
Sec. 677. Contract For Fixed Period Greater Than The Year, But Terminable Within The Year
If a contract, by its terms, is to continue beyond the year from the date of the making thereof, but by a further provision may be discharged or performed by the happening of some event before the end of the year, the weight of authority is that such contract is not within the statute of frauds, even if such contingency is not probable.1 Thus a contract to last one year from a future date, but subject to be terminated at the option of either party within a year from the date of making such contract,2 or one to last ninety-nine years, subject to be terminated at any time on three months' notice if the business should prove unprofitable;3 or one to last "five years, or so long as A shall continue to be agent of" a given corporation;4 or one to last "five years, or as long as A should continue in business,"5 are none of them within this clause of the statute. Such contracts are held by some courts to be within this clause of the statute.6
20 Hill v. Jamieson, 16 Ind. 125; 79 Am. Dec. 414; Pennsylvania Co. v. Dolan, 6 Ind. App. 109; 51 Am. St. Rep. 289; 32 N. E. 802; Sax v. R. R., 125 Mich. 252; 84 Am. St. Rep. 572; 84 N. W. 314; Smalley v. Mitchell, 110 Mich. 650; 68 N. W. 978. It is said that this principle applies whether the term of service is definite or indefinite. Hill v. Jamieson, 16 Ind. 125; 79 Am. Dec. 414; Pennsylvania Co. v. Dolan, 6 Ind. App. 109; 51 Am. St. Rep. 289; 32 N. E. 802; Sax v. Ry., 125 Mich. 252; 84 Am. St. Rep. 572; 84 N. W. 314.
21 Wooldridge v. Stern, 42 Fed. 311; 9 L. R. A. 129; Peters v. West-borough, 19 Pick. (Mass.) 364; 31 Am. Dec. 142.
22 Myers v. Korb (Ky.), 50 S. W. 1108.
23 Doyle v. Dixon, 97 Mass. 208; 93 Am. Dec. 80; Erwin v. Hayden (Tex. Civ. App.), 43 S. W. 610.
Contra, Higgins v. Gager, 65 Ark. 604; 47 S. W. 848.
24 Cotton v. Crawford (Ky.), 44 S. W. 954.
25 Hall v. Solomon, 61 Conn. 476; 29 Am. St. Rep. 218; 23 Atl. 876; Dickey v. Dickinson, 105 Ky. 748; 88 Am. St. Rep. 337; 49 S. W. 761; Carnig v. Carr, 167 Mass. 544; 57 Am. St. Rep. 488; 35 L. R. A. 512; 46 N. E. 117; Lyon v. King, 11 Met. (Mass.) 411; 45 Am. Dec. 219; Worthy v. Jones, 11 Gray (Mass.) 168; 71 Am. Dec. 696; Blanchard v. Weeks, 34 Vt. 589.
26 Weatherford, etc., Ry. v. Wood, 88 Tex. 191; 28 L. R. A. 526; 30 S. W. 859; affirming, 29 S. W. 411.
27 Martin v. Batchelder. 69 N. H. 360; 41 Atl. 83 (since the horse may die within the year from the date of making the contract).
28Wilhelm v. Hardman, 13 Md. 140; Peters v. Westborough, 19 Pick. (Mass.) 364; 31 Am. Dec. 142.
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