What is the difference between a fixed-term and an indefinite-term contract?

The main difference between a fixed-term and an indefinite-term contract is the length of the agreement. A fixed-term contract is an agreement between two parties that only lasts for a specified period of time. The length of a fixed-term contract may range from a few days to a few years and usually states when the agreement will end. On the other hand, an indefinite-term contract does not have a set expiration date. It is an agreement that can continue for as long as both parties are in agreement. An additional difference between a fixed-term contract and an indefinite-term contract is that a fixed-term contract is usually for a specified purpose, such as providing a service or supplying goods. An indefinite-term contract may include a greater amount of flexibility and provide both parties with the ability to update or change the agreement as needed. When it comes to California employment contracts law, a fixed-term contract may be terminated with sufficient notice if the contract allows for early termination. An indefinite-term contract, on the other hand, is not subject to an expiration date and may remain in effect until one of the parties terminates the agreement. It is important to note that in California, both fixed-term and indefinite-term contracts must be in writing, specify the term of the contract and include specific language regarding the agreement between the parties. In addition, both types of contracts can be terminated for any legally permissible reason.

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What is the difference between a fixed-term and an indefinite-term contract?

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