Contract Clause Library
Termination clause
Sets the conditions under which either party can end the agreement entirely, including for-cause termination and its consequences.
Distinct from a simple cancellation-for-convenience clause, termination usually covers for-cause scenarios — material breach, insolvency, failure to cure a problem after notice — and spells out what happens to payment, deliverables, and IP if the relationship ends that way rather than at a natural endpoint. It's the clause both sides hope never to need but that matters most when things go wrong.
Sample wording
Sample language (illustrative, not legal advice)
Either party may terminate this Agreement for cause if the other party materially breaches any provision and fails to cure such breach within 15 business days of written notice. Upon termination for cause, Client will pay for all work performed through the effective date of termination.
Red flags
- No cure period at all, allowing immediate termination for even a minor, fixable breach
- "Material breach" left undefined, making it a matter of interpretation exactly when this clause can be invoked
- Ambiguity about IP ownership and payment for in-progress work specifically in the for-cause scenario, as distinct from a normal cancellation
How MarginFlow reads it
MarginFlow extracts the cure period and the defined triggers for material breach, since those are the two facts most likely to be checked under pressure the moment someone is actually considering invoking this clause.
Related reading