The condo manager bound to a syndicate of co-owners by a contract for services does not have the same relationship with his client as the one who has the status of an employee and so, regarding a contract of employment; that being said, regardless of the nature of the relationship between the parties and in order to prevent misunderstandings and possible litigation in front of courts, it is advisable to specify the contract’s terms and conditions, its obligations and its possible renewal. Terminating the contractual relationship between the manager and the syndicate requires at all times an evaluation of the legal and contractual parameters.
Termination at the expiry of the term
When the contract for services has a fixed or determinate term, expiry occurs at a given date and so, the contractual relationship between the manager and the syndicate ends on a given date.
Contract termination at the request of the syndicate
Resiliation for cause
In presence of a serious reason, the syndicate may unilaterally resiliate the contract for services signed with the manager; this could occur if the latter has seriously breached his contractual obligations.
Resiliation without cause
The law also allows the syndicate to unilaterally resiliate the contract for services at any time without having to prove the manager has committed any fault whatsoever; this right may be exercised even if the provision of service is already in progress as long as this right is exercised reasonably and in good faith because if not, the syndicate may have to pay damages.
However, the right to terminate without cause is not absolute; for instance, it could be limited by the provisions of the management contract by a clause stipulating that it can only be terminated once in force after a certain number of months. In brief, for such a clause to be valid, it must be expressly and unequivocally stated.
Contract termination at the request of the manager
The manager may unilaterally resiliate the management contract, that is to say without the authorization of the syndicate only if he can invoke serious reasons:
However, even if the manager has legitimate reasons for terminating the management contract, he can't exercise this right at an inopportune moment or in an untimely manner, that is to say at a time that could be detrimental to the syndicate.
Compensation
The termination of the management contract has financial consequences for the syndicate; the latter must pay the amounts owed to the manager on the resiliation date:
Payment of a fixed indemnity amount
In addition to the aforementioned method of compensation, a manager may include in the management contract a clause regarding the payment of an indemnity in the event of a unilateral termination; the purpose of this type of clause is to provide preset damages as compensation for the loss of profits that would have been earned. In such a case, it is essential that the parties indicate clearly and unequivocally their intention not to invoke section 2129 of the Civil Code of Québec.
WHAT YOU SHOULD KNOW! Unless it has been concluded taking into account the personal qualities of the manager or if it can't adequately be assumed by his successor, the death or the incapacity of the manager does not terminate the contract for services.
WHAT TO KEEP IN MIND: If the contract is resiliated and if they exceed what he has earned, the manager must remit the advances received from the syndicate; as for the latter, it will have to pay the fees or expenses incurred for unpaid services rendered until the date of resiliation.
WARNING! The syndicate must act in good faith towards the manager; it can't unilaterally terminate the management contract with the intention of causing harm because by doing so, he would be exposed to a claim for damages.
Back to the sub-factsheet: Termination of the manager's contract
