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Contracts & Agreements

Notices Clause

A notices clause says how formal communications under a contract must be given and when they take effect. It is the most ignored clause in any agreement and it decides whether a termination worked.

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What notices clause means

A notices clause sets out how a party gives formal notice under the contract.

It names the address to which notices go, the permitted methods of delivery, the person or role they must be addressed to, and when they are deemed received.

That last element is the substantive one. Deemed receipt fixes the moment a notice takes effect, and it usually does so by a rule rather than by proof. Hand delivery on delivery, courier a stated number of days after despatch, email at the time of transmission subject to conditions.

Because many contractual rights operate on notice, the clause governs the moments that matter. Terminating for breach. Exercising an option. Serving a rent review notice. Giving notice of a claim within a time bar. Calling a default under a loan.

And because it is at the back of the contract with the other boilerplate, it is the clause nobody reads until they have already failed to comply with it.

How it is used

A workable clause covers a short list.

The address for each party, and a mechanism for changing it, requiring notice of the change to be given in the same way.

The permitted methods, listed rather than assumed.

Whether email is permitted, and if so to what address, and whether it is sufficient on its own or must be followed by a hard copy.

The person or role to whom notices must be addressed, and whether a copy must go to a lawyer.

Deemed receipt for each method.

And any carve out, such as a requirement that termination notices be given by hand or courier rather than email.

The practical discipline when giving a notice is to read the clause first, comply with it exactly, use a method that produces evidence of delivery, and keep that evidence.

Where the clause permits several methods, using more than one costs nothing. A notice served by courier and confirmed by email removes the argument entirely.

Key features

  • Governs how formal notices under a contract are given
  • Specifies addresses, permitted methods and addressees
  • Deemed receipt fixes when a notice takes effect
  • Applies to termination, options, claims and default notices
  • Should address whether email is permitted and sufficient
  • A notice that does not comply may be ineffective

How this works in Nigeria

The recurring Nigerian problem is informal communication.

Commercial relationships run on WhatsApp and phone calls. When a relationship breaks down, a party sends a message saying the contract is terminated, stops performing, and treats the matter as ended.

If the contract required notices in writing delivered to a stated address, that message may be no notice at all. The contract continues. The party that stopped performing is in breach, and the party that believed it had terminated is defending a claim.

The second problem is stale addresses. Contracts specify the registered office or a business address, and companies move. A notice served correctly to the address in the contract is effective even where nobody received it, which is why the clause should require notice of any change of address and why parties should actually give it.

The third is email. Most Nigerian commercial correspondence is by email, and many older contracts do not permit it for formal notices. Where a contract is silent or excludes it, an emailed termination is vulnerable.

Modern Nigerian drafting should address email expressly, and should decide deliberately whether electronic messaging services are permitted. Where WhatsApp is genuinely the channel the parties use, the contract can say so, with a nominated number and deemed receipt, rather than leaving the position to be argued.

And for anything consequential, a physical delivery with an acknowledgement remains the safest route in Nigeria, whatever the clause permits.

Contractual notice vs service of court process vs informal communication

Three ways something is formally communicated, with different rules.

A contractual notice is governed by the notices clause. Compliance with the clause determines whether it is effective, and deemed receipt determines when.

Service of court process is governed by the rules of court. Personal service is the norm for originating processes, substituted service requires an order, and service on a company at its registered office is effective whether or not anybody read it.

Informal communication is everything else: calls, messages, conversations. It may be excellent evidence of what the parties actually discussed, and it is not notice unless the contract or the rules permit that method.

The practical error is treating the third as the first. A message announcing termination is a communication. Whether it is a notice depends entirely on what the contract says.

Limits and risks

Strict compliance can produce hard outcomes. A notice that reached the right person but used the wrong method may be ineffective, which can feel disproportionate.

Deemed receipt also cuts both ways. A party may be treated as having received a notice they genuinely never saw.

An out of date address in a contract creates a trap for the party who moved, which is why the change of address mechanism matters.

And the clause cannot help where a party gave no notice at all. It governs the manner, not the substance, and a party that simply stopped performing has a different problem.

Worth knowing

Read the notices clause before you terminate anything, and serve by more than one permitted method. Nigerian terminations fail on service more often than on the merits, and a courier delivery confirmed by email costs nothing and removes the argument.

Questions people ask

What is a notices clause?

A contract term setting out how formal notices must be given: the address, the permitted methods, the person addressed, and when a notice is deemed received.

Why does it matter?

Because many contractual rights operate on notice, including termination, exercising options, rent reviews and claims within a time bar. A notice that does not comply with the clause may be ineffective.

Can I terminate a contract by WhatsApp?

Only if the contract permits that method. Where it requires written notice to a stated address, a message may be no notice at all, and the contract continues while you have stopped performing.

What is deemed receipt?

A rule fixing when a notice takes effect, usually by method: on delivery for hand delivery, a stated number of days after despatch for courier, or at transmission for email subject to conditions.

What if the address in the contract is out of date?

A notice served correctly to the contractual address is generally effective even where nobody received it. That is why the clause should require notice of any change of address, and why parties should give it.

Should the clause permit email?

Modern drafting should address it expressly rather than leaving it to argument. Where the parties genuinely communicate by a messaging service, the contract can permit that too, with a nominated number and deemed receipt.

Documents that use this

Notices Clauses and Why They Matter — LegalDoc