Coterminus: Definition, Example and Related Terms
What does it mean when something is Coterminus ?
For example, if a company holds a lease on a building and a service contract for facilities maintenance, these contracts may be co terminus if they are both set to expire on the same date.
Coordinating contract end dates can simplify the renewal or termination process, as decisions regarding the continuation of one agreement can be aligned with the status of related agreements. This can be beneficial for managing a portfolio of contracts and ensuring that support services remain in place as needed.
When drafting or reviewing contracts, it is important to consider the advantages and potential drawbacks of making agreements coterminus. While it can streamline management, it may also place simultaneous demands on resources and attention when multiple contracts come up for renewal or renegotiation at the same time.
Example(s)
Scenario Description Lease and Maintenance Agreements A company leases office space and also has a maintenance contract for the facilities. If both contracts are set to expire on the same date, they are co terminus. Employment and Consultancy Contracts An organization hires a consultant and an in-house employee for the same project duration. If both contracts start and end on the same dates, they are considered co terminus. Software License and Support Services A business purchases a software license and a support contract for the software. If the support contract is structured to end when the software license expires, they are co terminus.