Contractual Termination-based Provision

A Contractual Termination-based Provision is a contractual provision that specifies the circumstances under which the contract or certain obligations under the contract may be terminated by one or more contract parties.

• AKA: Termination Provision.
• Context:
  • It can cover various termination scenarios, such as termination for breach, for convenience, upon the occurrence of certain events, or at the expiration of a specified term.
  • It can (often) include:
    • a Termination Trigger.
    • a Termination Procedure.
    • a Consequences of Termination.
  • It can range from being an Atomic Termination Provision to being a Complex Termination Provision.
  • It can range from being a Single Element Termination Provision, a Two Element Termination Provision, to being a Many Element Termination Provision.
  • It can range from being a General Termination Provision to being a Contract-Specific Termination Provision.
  • It can range from being an Unconditional Termination Provision (where the right to terminate is not subject to any conditions) to being a Conditional Termination Provision (where the right to terminate is subject to certain conditions or limitations).
  • ...
• Example(s):
  • a Software License Agreement that allows for termination upon violation of license terms.
  • a Construction Contract that includes a provision for termination if the project timeline is not adhered to by the contractor.
  • ...
• Counter-Example(s):
  • Perpetual Licenses, which generally do not allow for termination unless explicitly specified.
  • Automatically Renewing Contracts where termination clauses are absent or automatically extend unless specifically terminated.
• See: Breach of Contract, Contract Renegotiation.

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