Contractual Termination-based Provision
(Redirected from termination 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:
- 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.