Q&As

Is a term in a contract that may be in perpetuity valid?

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Published by a LexisNexis Commercial expert

Published on: 10 July 2017

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Validity

In so far as they are merely personal, contracts and contractual rights and obligations as such are altogether outside the rule against perpetuities (South Eastern Rly Co v Associated Portland Cement Manufacturers (1900) Ltd).

It was formerly held that every contract not expressly limited as to duration was prima facie permanent and irrevocable. This placed upon the party asserting that the contract was not perpetual, the burden of showing either some expression in the contract itself, or something in the nature of the contract, from which it could reasonably

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Jurisdiction(s):

United Kingdom

Key definition:

Perpetuity definition

What does Perpetuity mean?

A stream of cash flows that theoretically will last for ever.

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