Clauses
The ending of a contract before or at the natural close of its term.
Termination is how a contract ends. Termination clauses spell out who can end the agreement, on what grounds, and with how much notice. Two common flavors sit side by side in most contracts: termination for cause (ending the deal because the other side did something wrong, such as a material breach) and termination for convenience (ending it simply because you want to).
The notice period is the practical heart of the clause. "Either party may terminate with 30 days written notice" defines both your exit and your exposure. Termination language should be read together with the term and any auto-renewal provision.
Related terms
A clause letting a party end the contract for any reason, without having to prove fault.
The length of time a contract stays in force, from its start date to its expiration.
A failure to perform that is serious enough to defeat the purpose of the contract.
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