First right of refusal and liquidated damages

we have a contract with a waste management company that ends in 15 months. There is also a "first right of refusal" clause which says at the end of the contract we need to show them quotes from new vendors and they can match the quote. Also there are pre defined liquidated damages. So if we want can we simply pay the liquidated damage and walk away? And if we are unhappy because they have been over charging and decide to leave at the end of the contract is their "first right of refusal" clause enforceable?


Asked over 3 years ago in Toronto, Ontario
Categories: Contracts

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Mike C Stewart, P.Eng

Answer by Mike C Stewart, P.Eng

VerifiedBritish Columbia lawyer

It depends on how the liquidated damages clause is worded. If it says that the liquidated damages are the sole remedy in the event of a breach of contract then it is likely that the first right of refusal will not apply. But again it depends on wording. You need a lawyer to review it and give you an opinion.

Posted over 3 years ago

Please note that this is for informational purposes only and does not constitute legal advice to you. Legal advice pertaining to your particular situation can only be provided by a lawyer who has met with you to obtain all pertinent background information necessary to give you a formal legal opinion. For formal legal advice, hire a lawyer (many give a free first consultation). Contact Mike C Stewart, P.Eng, or search the Lawyer Directory.

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