Common use of Duration of Service Clause in Contracts

Duration of Service. 2.1 The effective date of the Contract is the date on which the Agreement was signed, unless otherwise specified in the Contract. The Maintenance Service Agreement for Application Programs has a duration of one year from 1st January until 31st December. Should the Contract begin in a month other than January, the fee for the first year will be calculated in twelfths with effect from the month indicated in the Contract and up to the 31st December of the same year. Once adjusted to the calendar year, the Contract is automatically renewed from year to year, unless terminated by either Party by Certified Mail or by Registered Letter with acknowledgement or receipt at least 90 days before the deadline. 2.2 At the beginning of each calendar year, the fee established in the Contract may automatically undergo an increase based on the ISTAT FOI cost of living index and the amount will be rounded up to the next integer. 2.3 In any case, and irrespective of the ISTAT FOI increase, the Manufacturer/Retailer has the right to inform the Customer of any change in the Maintenance fee upon written notice of at least 60 days, with effect from the new calendar year. In such a case, the Customer is entitled to withdraw from the Contract at any time, upon written notice of at least 30 days. 2.4 Regardless of the reasons, the Manufacturer/Retailer is entitled to withdraw from the Contract at any time, upon written notice of at least 90 days prior to the effective date of withdrawal.